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Union Pacific (UNP) Q2 Earnings, Revenues Top Estimates, Up Y/Y
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Union Pacific Corporation (UNP - Free Report) reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
Union Pacific’s earnings of $2.93 per share surpassed the Zacks Consensus Estimate of $2.82. Moreover, the bottom line increased 3.9% on a year-over-year basis.
Operating revenues of $6,269 million also beat the Zacks Consensus Estimate of $6,105.3 million. The top line climbed 14% on a year-over-year basis owing to higher fuel surcharge revenues, core pricing gains, and a positive business mix.
Freight revenues increased 14% to $5,842 million. Business volumes, measured by total revenue carloads, were down 1%.
Operating income in the second quarter increased 1% year over year to $2,495 million. Total operating expenses rose 25% to $3,774 million. Operating ratio (operating expenses as a percentage of revenues) declined by 510 basis points to 60.2% in the year-ago quarter. Higher fuel prices unfavorably impacted the operating ratio by 130 basis points.
Union Pacific Corporation Price, Consensus and EPS Surprise
Bulk (Grain & grain products, Fertilizer, Food & refrigerated, Coal & renewables) freight revenues were $1,813 million, up 10% year over year.
Industrial freight revenues totaled $2,091 million, up 12% year over year.
Freight revenues in the Premium division were $1,938 million, up 19% year over year.
Other revenues increased 15% to $427 million in the second quarter.
Liquidity & Buyback
Union Pacific exited the second quarter of 2022 with cash and cash equivalents of $788 million compared with $909 million at the end of March 2022. Debt (due after a year) decreased to $29,673 million at the end of the second quarter from $30,680 million at March 2022 end.
In the reported quarter, Union Pacific repurchased 3.1 million shares at an aggregate cost of $722 million.
Delta AirLines’ (DAL - Free Report) second-quarter 2022 earnings (excluding 29 cents from non-recurring items) of $1.44 per share fell short of the Zacks Consensus Estimate of $1.71. Escalated operating expenses induced the earnings miss. Multiple flight cancellations in May and June also hurt results. The earnings miss disappointed investors, resulting in the stock shedding value in early trading. In the year-ago quarter, Delta incurred a loss of $1.07 per share when air-travel demand was not as buoyant as in the current scenario.
DAL’s revenues came in at $13,824 million, which not only beat the Zacks Consensus Estimate of $13,608.9 million but also soared 94% from the year-ago quarter’s figure as air-travel demand rebounded from the pandemic lows. The uptick in air-travel demand in the United States can be gauged from the fact that 75.9% of second-quarter 2022 passenger revenues came from the domestic markets.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
JBHT’s quarterly earnings of $2.42 per share surpassed the Zacks Consensus Estimate of $1.61 and improved 50.3% year over year.
JBHT’s total operating revenues of $3,837.53 million also outperformed the Zacks Consensus Estimate of $2,908.37 million. The top line jumped 32% year over year on the back of strength across all segments. JBHT’s total operating revenues, excluding fuel surcharges, rose 21.2% year over year.
CSX Corporation ((CSX - Free Report) ) reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
CSX’s quarterly earnings of 50 cents per share (excluding 4 cents from non-recurring items) beat the Zacks Consensus Estimate of 47 cents and improved 25% year over year.
CSX’s total revenues of $3,815 million outperformed the Zacks Consensus Estimate of $2,990 million. The top line increased 28% year over year on the back of higher revenues in almost all markets, driven by pricing gains, fuel surcharge, and contribution from the acquisition of Quality Carriers. CSX’s overall revenues per unit increased 27%.
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Union Pacific (UNP) Q2 Earnings, Revenues Top Estimates, Up Y/Y
Union Pacific Corporation (UNP - Free Report) reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
Union Pacific’s earnings of $2.93 per share surpassed the Zacks Consensus Estimate of $2.82. Moreover, the bottom line increased 3.9% on a year-over-year basis.
Operating revenues of $6,269 million also beat the Zacks Consensus Estimate of $6,105.3 million. The top line climbed 14% on a year-over-year basis owing to higher fuel surcharge revenues, core pricing gains, and a positive business mix.
Freight revenues increased 14% to $5,842 million. Business volumes, measured by total revenue carloads, were down 1%.
Operating income in the second quarter increased 1% year over year to $2,495 million. Total operating expenses rose 25% to $3,774 million. Operating ratio (operating expenses as a percentage of revenues) declined by 510 basis points to 60.2% in the year-ago quarter. Higher fuel prices unfavorably impacted the operating ratio by 130 basis points.
Union Pacific Corporation Price, Consensus and EPS Surprise
Union Pacific Corporation price-consensus-eps-surprise-chart | Union Pacific Corporation Quote
Segmental Performance
Bulk (Grain & grain products, Fertilizer, Food & refrigerated, Coal & renewables) freight revenues were $1,813 million, up 10% year over year.
Industrial freight revenues totaled $2,091 million, up 12% year over year.
Freight revenues in the Premium division were $1,938 million, up 19% year over year.
Other revenues increased 15% to $427 million in the second quarter.
Liquidity & Buyback
Union Pacific exited the second quarter of 2022 with cash and cash equivalents of $788 million compared with $909 million at the end of March 2022. Debt (due after a year) decreased to $29,673 million at the end of the second quarter from $30,680 million at March 2022 end.
In the reported quarter, Union Pacific repurchased 3.1 million shares at an aggregate cost of $722 million.
Currently, Union Pacific carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Transportation Companies
Delta AirLines’ (DAL - Free Report) second-quarter 2022 earnings (excluding 29 cents from non-recurring items) of $1.44 per share fell short of the Zacks Consensus Estimate of $1.71. Escalated operating expenses induced the earnings miss. Multiple flight cancellations in May and June also hurt results. The earnings miss disappointed investors, resulting in the stock shedding value in early trading. In the year-ago quarter, Delta incurred a loss of $1.07 per share when air-travel demand was not as buoyant as in the current scenario.
DAL’s revenues came in at $13,824 million, which not only beat the Zacks Consensus Estimate of $13,608.9 million but also soared 94% from the year-ago quarter’s figure as air-travel demand rebounded from the pandemic lows. The uptick in air-travel demand in the United States can be gauged from the fact that 75.9% of second-quarter 2022 passenger revenues came from the domestic markets.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
JBHT’s quarterly earnings of $2.42 per share surpassed the Zacks Consensus Estimate of $1.61 and improved 50.3% year over year.
JBHT’s total operating revenues of $3,837.53 million also outperformed the Zacks Consensus Estimate of $2,908.37 million. The top line jumped 32% year over year on the back of strength across all segments. JBHT’s total operating revenues, excluding fuel surcharges, rose 21.2% year over year.
CSX Corporation ((CSX - Free Report) ) reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
CSX’s quarterly earnings of 50 cents per share (excluding 4 cents from non-recurring items) beat the Zacks Consensus Estimate of 47 cents and improved 25% year over year.
CSX’s total revenues of $3,815 million outperformed the Zacks Consensus Estimate of $2,990 million. The top line increased 28% year over year on the back of higher revenues in almost all markets, driven by pricing gains, fuel surcharge, and contribution from the acquisition of Quality Carriers. CSX’s overall revenues per unit increased 27%.