Union Pacific on Thursday reported adjusted net income of $1.7 billion, or $2.87 per diluted share in the first quarter, up from $1.6 billion, or $2.70 per share, in the year-ago period.
“Our safety, service, and operating momentum continued in the first quarter as we further challenged ‘what’s possible’ from our great railroad,” said Jim Vena, Union Pacific (NYSE: UNP) chief executive, in a statement.”We grew reported net income 5%, increased earnings per share 6%, and improved our operating ratio. As we advance through the regulatory process to create America’s first transcontinental railroad, we have a solid foundation for another year of industry-leading results.”
UP reaffirmed high-single to low-double digit earnings growth through 2027. Its shares were up 1.54% to $253.00 in pre-market trading.
The positive results were more positive news for the rail sector, after CSX (NASDAQ: CSX) on Wednesday reported earnings growth.
The Omaha-based company expects to file an updated merger application with federal regulators in conjunction with its acquisition of Norfolk Southern (NYSE: NSC) by April 30.
Operating revenue came to $6.2 billion, better by 3% on core pricing gains, fuel surcharge revenue, and business mix partially offset by carload freight that was 1% lower year-on-year despite a muted economic forecast.
Freight revenue increased 4% and freight revenue excluding fuel surcharge grew 3%.
The operating ratio, a key indicator of efficiency, improved by 20 basis points to 60.5%. Adjusted operating ratio was 59.9%, better by 80 basis points.
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