Union Pacific Inventory Surges as Earnings Prime Expectations, Due to Falling Gasoline Prices

Union Pacific (UNP) shares surged Thursday after the large freight provider posted better-than-expected earnings as its prices for gas declined.

The shipper reported fourth-quarter earnings per share (EPS) jumped 7% from a 12 months in the past to $2.91, exceeding analysts’ expectations. Working income fell 1% to $6.12 billion, barely lacking forecasts compiled by Seen Alpha.

Union Pacific’s earnings progress got here as gas prices plunged 23% to $581 million, and the typical gas value per gallon consumed dropped 24% to $2.41. It was the fourth consecutive quarter of common gas price declines.

The corporate additionally stated freight automobile velocity improved 1% to 219 day by day miles per automobile, and workforce productiveness grew 6% to 1,118 automobile miles per worker.

Union Pacific projected full-year EPS can be per reaching its three-year compound annual progress charge (CAGR) within the vary of a high-single-digit to low-double-digit p.c. Nonetheless, it warned volumes might be “impacted by combined financial backdrop, coal demand, and difficult year-over-year worldwide intermodal comparisons.”

Shares of Union Pacific had been up shut to five% in intraday buying and selling Thursday and have gained over 8% for the reason that begin of the 12 months.