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Union Pacific (UNP) Q3 Earnings, Revenues Top Estimates, Up Y/Y
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Union Pacific Corporation (UNP - Free Report) reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
Union Pacific’s earnings of $3.19 per share surpassed the Zacks Consensus Estimate of $3.06. Moreover, the bottom line increased 24.1% on a year-over-year basis.
Operating revenues of $6,566 million also beat the Zacks Consensus Estimate of $6,440.6 million. The top line climbed 18% on a year-over-year basis, owing to higher fuel surcharge revenues, volume growth and solid core pricing.
Freight revenues increased 18% to $6,109 million. Business volumes, measured by total revenue carloads, were up 3%.
Operating income in the third quarter increased 8% year over year to $2,633 million. Total operating expenses rose 25% to $3,933 million. Operating ratio (operating expenses as a percentage of revenues) grew by 360 basis points to 59.9% in the year-ago quarter. Lower fuel prices positively impacted the operating ratio by 70 basis points.
Union Pacific Corporation Price, Consensus and EPS Surprise
Bulk (Grain & grain products, Fertilizer, Food & refrigerated, Coal & renewables) freight revenues were $1,959 million, up 16% year over year.
Industrial freight revenues totaled $2,194 million, up 15% year over year.
Freight revenues in the Premium division were $1,956 million, up 25% year over year.
Other revenues increased 14% to $457 million in the second quarter.
Liquidity & Buyback
Union Pacific exited the third quarter of 2022 with cash and cash equivalents of $1,267 million compared with $788 million at the end of June 2022. Debt (due after a year) increased to $31,744 million at the end of the third quarter from $29,673 million at June 2022-end.
In the reported quarter, Union Pacific repurchased 9.5 million shares at an aggregate cost of $2.1 billion.
Delta AirLines’ (DAL - Free Report) third-quarter 2022 earnings (excluding 42 cents from non-recurring items) of $1.51 per share fell short of the Zacks Consensus Estimate of $1.56. Escalated operating expenses induced the earnings miss. Multiple flight cancelations and booking weaknesses due to Hurricane Ian also hurt results. DAL reported earnings of 30 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by the high air-travel demand, total revenues increased more than 52% on a year-over-year basis.
United Airlines’ (UAL - Free Report) third-quarter 2022 earnings (excluding 5 cents from non-recurring items) of $2.81 per share beat the Zacks Consensus Estimate of $2.21 and our estimate of $2.17. An upbeat in air-travel demand aided results.
In the year-ago quarter, UAL incurred a loss of $1.02 per share when air-travel demand was not as buoyant as in the current scenario. The third quarter of 2022 was the second consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,877 million beat the Zacks Consensus Estimate of $12,709.5 million and our estimate of $12, 631.6 million. UAL’s revenues increased more than 66% year over year owing to an upbeat in air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.2% from third-quarter 2019 (pre-coronavirus) levels.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
Quarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.
Total operating revenues of $3,838.3 million also outperformed the Zacks Consensus Estimate of $3803.4 million. The top line jumped 22.1% year over year on the back of strength across — Dedicated Contract Services (DCS), Intermodal (JBI), Truckload (JBT) and Final Mile Services (FMS) segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.
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Union Pacific (UNP) Q3 Earnings, Revenues Top Estimates, Up Y/Y
Union Pacific Corporation (UNP - Free Report) reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
Union Pacific’s earnings of $3.19 per share surpassed the Zacks Consensus Estimate of $3.06. Moreover, the bottom line increased 24.1% on a year-over-year basis.
Operating revenues of $6,566 million also beat the Zacks Consensus Estimate of $6,440.6 million. The top line climbed 18% on a year-over-year basis, owing to higher fuel surcharge revenues, volume growth and solid core pricing.
Freight revenues increased 18% to $6,109 million. Business volumes, measured by total revenue carloads, were up 3%.
Operating income in the third quarter increased 8% year over year to $2,633 million. Total operating expenses rose 25% to $3,933 million. Operating ratio (operating expenses as a percentage of revenues) grew by 360 basis points to 59.9% in the year-ago quarter. Lower fuel prices positively impacted the operating ratio by 70 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 $1,959 million, up 16% year over year.
Industrial freight revenues totaled $2,194 million, up 15% year over year.
Freight revenues in the Premium division were $1,956 million, up 25% year over year.
Other revenues increased 14% to $457 million in the second quarter.
Liquidity & Buyback
Union Pacific exited the third quarter of 2022 with cash and cash equivalents of $1,267 million compared with $788 million at the end of June 2022. Debt (due after a year) increased to $31,744 million at the end of the third quarter from $29,673 million at June 2022-end.
In the reported quarter, Union Pacific repurchased 9.5 million shares at an aggregate cost of $2.1 billion.
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) third-quarter 2022 earnings (excluding 42 cents from non-recurring items) of $1.51 per share fell short of the Zacks Consensus Estimate of $1.56. Escalated operating expenses induced the earnings miss. Multiple flight cancelations and booking weaknesses due to Hurricane Ian also hurt results. DAL reported earnings of 30 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by the high air-travel demand, total revenues increased more than 52% on a year-over-year basis.
United Airlines’ (UAL - Free Report) third-quarter 2022 earnings (excluding 5 cents from non-recurring items) of $2.81 per share beat the Zacks Consensus Estimate of $2.21 and our estimate of $2.17. An upbeat in air-travel demand aided results.
In the year-ago quarter, UAL incurred a loss of $1.02 per share when air-travel demand was not as buoyant as in the current scenario. The third quarter of 2022 was the second consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,877 million beat the Zacks Consensus Estimate of $12,709.5 million and our estimate of $12, 631.6 million. UAL’s revenues increased more than 66% year over year owing to an upbeat in air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.2% from third-quarter 2019 (pre-coronavirus) levels.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
Quarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.
Total operating revenues of $3,838.3 million also outperformed the Zacks Consensus Estimate of $3803.4 million. The top line jumped 22.1% year over year on the back of strength across — Dedicated Contract Services (DCS), Intermodal (JBI), Truckload (JBT) and Final Mile Services (FMS) segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.