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Union Pacific (UNP) Surpasses on Q1 Earnings & Revenues

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Union Pacific Corporation’s (UNP - Free Report) first-quarter 2018 earnings of $1.68 beat the Zacks Consensus Estimate of $1.65 per share. The bottom line expanded 27.3% on a year-over-year basis. Results were aided by higher revenues.

Operating revenues of $5,475 million also surpassed the Zacks Consensus Estimate of $5,370.8 million. Moreover, revenues increased 6.7% year over year. Higher freight revenues boosted the top line. The bulk of revenues (93.6%) at Union Pacific was derived from freight in the reported quarter.

Freight revenues grew 7%, boosting the top line. The uptick was owing to volume growth and increased fuel surcharge revenues among other factors.

Operating income in the first quarter rose 8% year over year to $1,939 million. Adjusted operating ratio (defined as operating expenses as a percentage of revenues) came in at 64.6%, reflecting an increase of 0.6 points. During the quarter, this Zacks Rank #3 (Hold) company bought back 9.3 million shares for $1.2 billion.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Segment Details

Agricultural Products freight revenues were $1,098 million, flat year over year. Revenue carloads decreased 4%year over year. Average revenue per car however increased 5%.

Freight revenues at the Energy division were $1,173 million, up 15% year over year. Revenue carloads increased 6%year over year. Average revenue per car increased 8%.

Industrial freight revenues were $1,340 million, up 6% year over year. Revenue carloads increased 2%year over year. Average revenue per car increased 4%.

Freight revenues at the Premium division were $1,511 million, up 7% year over year. Revenue carloads increased 2%year over year. Average revenue per car increased 5%.

Other revenues improved 4% to $353 million in the first quarter of 2018.

Union Pacific Corporation Price, Consensus and EPS Surprise

 

Union Pacific Corporation Price, Consensus and EPS Surprise | Union Pacific Corporation Quote

Liquidity

Union Pacific exited the quarter with cash and cash equivalents of $1,048 million compared with $1,275 million at the end of 2017. Debt (due after one year) came in at $15,697 million at the end of the quarter compared with $16,144 million at the end of 2017. Adjusted debt-to-capitalization ratio increased to 45.1% from 43.9% at 2017-end.

Upcoming Releases

Investors interested in the broader Zacks Transportation industry are keenly awaiting first-quarter earnings reports from key players like Copa Holdings, S.A. (CPA - Free Report) , C.H. Robinson Worldwide, Inc. (CHRW - Free Report) and Expeditors International of Washington, Inc. (EXPD - Free Report) , in the coming days. While C.H. Robinson Worldwide is scheduled to report on May 1, Expeditors and Copa Holdings are scheduled to do the same on May 8 and May 9, respectively.

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