First look: Union Pacific Q4 earnings

Revenue, profit miss analysts’ expectations

(Photo: Jim Allen/FreightWaves)

Union Pacific Corp. on Tuesday reported fourth-quarter profit of $1.85 billion on revenue of $6.09 billion, both short of Wall Street expectations.

Per-share earnings came up short for the Omaha, Neb.-based company (NYSE: UNP) at $3.11. Adjusted earnings came to $2.86 per share.

Analysts’ consensus was for earnings of $2.90 per share, on revenue of $6.14 billion.

The company, which is in the process of merging with Norfolk Southern (NYSE: NSC) to form the first transcontinental railroad, said operating revenue of $6.1 billion fell by 1% from the year-ago quarter, on carloads that were 4% lower, partially offset by core pricing gains and fuel surcharge revenue.

The railroad’s operating ratio for the fourth quarter was 60.5%, 180 basis points higher y/y.

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Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.