Union Pacific Q3 revenue, adjusted EPS beat on volume growth and pricing gains
UNP•Union Pacific's third-quarter revenue rose 15% to $7.20 billion and adjusted EPS increased 15% to $3.53, beating analyst expectations. The company cited 6% volume growth and expects reported EPS growth in the high single digits.
1. Quarterly results
Union Pacific reported third-quarter revenue of $7.20 billion, above the $7.12 billion analyst consensus, and adjusted EPS of $3.53, above the $3.47 consensus. Net income was $2.08 billion and reported EPS was $3.49.
2. Growth and outlook
The company said revenue growth was driven by 6% volume growth, core pricing gains and higher fuel surcharges. It cited record workforce productivity, longer trains and improved fuel consumption as supporting volume growth, while higher fuel prices negatively affected its operating ratio. Union Pacific expects reported EPS growth in the high single digits, in line with its three-year compound annual growth rate target.
