Union Pacific(UNP)

Search documents
Union Pacific(UNP) - 2024 Q3 - Quarterly Report
2024-10-24 19:20
Financial Performance - The company reported earnings of $2.75 per diluted share on net income of $1.7 billion, with an operating ratio of 60.3% for Q3 2024, compared to earnings of $2.51 per diluted share and net income of $1.5 billion with an operating ratio of 63.4% in Q3 2023[72]. - Operating income rose by 11% to $2.4 billion, while operating expenses decreased by 2% due to productivity gains and lower fuel prices[75]. - The total revenue for the nine months ended September 30, 2024, was $18.129 billion, reflecting a 1% increase compared to $17.960 billion in the same period of 2023[76]. - Net income for the trailing twelve months ended September 30, 2024, was $6,637 million, up from $6,379 million in the previous year[110]. - Cash provided by operating activities increased to $6,684 million in the first nine months of 2024, compared to $5,984 million in the same period of 2023[113]. - Free cash flow for the same period was $1.855 billion, significantly up from $954 million in 2023, indicating a 94.5% increase[119]. Revenue and Freight Metrics - Freight revenues increased by 4% in Q3 2024 to $5.768 billion, driven by a 6% volume increase and core pricing gains, despite a negative mix and lower fuel surcharge revenues[72][77]. - International intermodal business surged by 33% year-over-year, contributing to improved operating metrics, including a 5% increase in freight car velocity and locomotive productivity[73]. - Grain and grain products revenue increased by 12% to $923 million in Q3 2024, while coal and renewables revenue decreased by 17% to $405 million[81]. - The company experienced a 6% increase in total revenue carloads to 2.167 million in Q3 2024 compared to 2.052 million in Q3 2023[82]. - Premium freight revenues rose by 33% in Q3 2024 compared to Q3 2023, driven by increased international intermodal demand and business development efforts[87]. - Revenues from Mexico business increased by 7% to $724 million in Q3 2024, supported by a 2% volume increase and a 5% increase in ARC[88]. Operating Efficiency - The operating ratio improved by 3.1 points from Q3 2023, indicating enhanced operational efficiency[75]. - Workforce productivity improved by 12%, with total train, engine, and yard employees remaining flat year-over-year[73]. - Total operating expenses decreased by 2% in Q3 2024 to $3,675 million compared to $3,764 million in Q3 2023, driven by productivity and lower fuel prices[89]. - Fuel expenses decreased by 13% in Q3 2024, with locomotive diesel fuel prices averaging $2.60 per gallon compared to $3.12 in Q3 2023[93]. - Gross ton-miles increased by 4% to 216.0 billion in Q3 2024 compared to Q3 2023, while revenue ton-miles rose by 1% to 104.0 billion[102]. - Freight car velocity improved by 5% in Q3 2024, with average daily miles per car reaching 210 miles[104]. Cash Flow and Investments - Total cash capital investments for the first nine months of 2024 were $2,530 million, slightly down from $2,582 million in 2023[115]. - The capital plan for 2024 is expected to be approximately $3.4 billion, an 8% decrease from 2023[117]. - The cash flow conversion rate improved to 83% in 2024 from 72% in 2023, reflecting enhanced efficiency in converting net income to cash flow[120]. - During Q3 2024, the company generated $2.7 billion in cash from operating activities and repurchased $738 million in shares[121]. - As of September 30, 2024, the company had $947 million in cash and cash equivalents, with $2.0 billion available under its revolving credit facility[121]. Debt and Financial Obligations - Interest expense decreased by 6% in Q3 2024 to $314 million, attributed to a lower weighted-average debt level of $31.4 billion[99]. - Total contractual obligations as of September 30, 2024, amounted to $62.303 billion, with debt obligations comprising $58.298 billion[123]. - The company expects to remain in compliance with its debt covenants despite potential economic fluctuations[121]. - Adjusted debt to adjusted EBITDA ratio improved to 2.7 in September 2024, down from 3.0 in December 2023[110]. Taxation - Income tax expense increased by 23% in Q3 2024 to $518 million, driven by higher pre-tax income and lower deferred tax adjustments[100]. - The effective tax rate for year-to-date 2024 was 23.5%, up from 21.9% in 2023[100]. Future Outlook - There are no known trends or uncertainties that could materially adversely affect the company's financial condition or liquidity as of the reporting date[122]. - The company continues to evaluate its financial condition and liquidity under various economic scenarios to ensure sufficient cash generation capabilities[121]. - Forward-looking statements indicate potential impacts from geopolitical tensions and public health crises, which may affect future operations and financial results[125].
Union Pacific's Third-Quarter Earnings & Revenues Miss Estimates
ZACKS· 2024-10-24 17:15
Core Insights - Union Pacific Corporation (UNP) reported third-quarter 2024 earnings of $2.75 per share, slightly missing the Zacks Consensus Estimate of $2.76 per share, but showing a year-over-year improvement of 9.6% due to strong operational efficiency and favorable pricing [1] - Operating revenues reached $6.09 billion, falling short of the Zacks Consensus Estimate of $6.19 billion, yet reflecting a 2.5% year-over-year increase driven by core pricing gains and higher volumes [2] - Freight revenues, which constitute 94.7% of total revenues, increased by 4% to $5.77 billion, surpassing the estimate of $5.72 billion, while other revenues decreased by 18% to $323 million [2] Financial Performance - The operating income rose by 11% year over year to $2.4 billion, with total operating expenses declining by 2% to $3.68 billion [2] - Fuel expenses decreased by 13%, and expenses on purchased services and materials fell by 4%, contributing to the overall reduction in operating expenses [2] - The operating ratio improved by 310 basis points year over year to 60.3%, aided by lower quarterly fuel prices which positively impacted the ratio by 120 basis points [3] Segment Performance - Bulk freight revenues amounted to $1.80 billion, a 2% increase year over year, despite a projected decline of 0.3% [4] - Industrial freight revenues totaled $2.12 billion, up 3% year over year, while Premium division freight revenues increased by 7% to $1.84 billion, with Premium revenue carloads improving by 14% year over year [4] Liquidity and Outlook - Union Pacific ended the third quarter of 2024 with cash and cash equivalents of $947 million, down from $1.06 billion at the end of 2023, while debt decreased to $29.76 billion from $31.16 billion [5] - The company anticipates fourth-quarter results to be consistent with the third quarter, with expectations for year-over-year improvement compared to the fourth quarter of 2023 [6] - Management plans to repurchase approximately $1.5 billion in shares in 2024 and forecasts capital expenditures of $3.4 billion for the year [6]
Union Pacific (UNP) Reports Q3 Earnings: What Key Metrics Have to Say
ZACKS· 2024-10-24 16:06
Union Pacific (UNP) reported $6.09 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 2.5%. EPS of $2.75 for the same period compares to $2.51 a year ago.The reported revenue represents a surprise of -1.58% over the Zacks Consensus Estimate of $6.19 billion. With the consensus EPS estimate being $2.76, the EPS surprise was -0.36%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determi ...
Union Pacific(UNP) - 2024 Q3 - Earnings Call Transcript
2024-10-24 15:43
Union Pacific Corporation (NYSE:UNP) Q3 2024 Results Conference Call October 24, 2024 8:45 AM ET Company Participants Jim Vena - CEO Jennifer Hamann - EVP and CFO Kenny Rocker - EVP, Marketing and Sales Eric Gehringer - EVP, Operations Conference Call Participants Ken Hoexter - Bank of America Chris Wetherbee - Wells Fargo Walter Spracklin - RBC Capital Markets David Vernon - Bernstein Mike Triano - UBS Daniel Imbro - Stephens Jon Chappell - Evercore ISI Brian Ossenbeck - JPMorgan Ben Nolan - Stifel Eric Mo ...
Why Union Pacific Stock Is Down Today
The Motley Fool· 2024-10-24 15:24
The railroad's results fell short of expectations. Union Pacific (UNP -5.21%) results fell short of expectations as the railroad works to reduce costs in a tough operating environment. Investors took the news hard, sending UNP shares down 5% as of 10:30 a.m. ET. Operational improvements in a tough environment Union Pacific is one of two primary railroads serving the western half of the United States, with more than 32,000 miles of track and access to key Pacific ports. But demand for shipping services has b ...
Union Pacific (UNP) Q3 Earnings and Revenues Miss Estimates
ZACKS· 2024-10-24 13:56
Union Pacific (UNP) came out with quarterly earnings of $2.75 per share, missing the Zacks Consensus Estimate of $2.76 per share. This compares to earnings of $2.51 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -0.36%. A quarter ago, it was expected that this railroad would post earnings of $2.70 per share when it actually produced earnings of $2.74, delivering a surprise of 1.48%.Over the last four quarters, the company has ...
Union Pacific(UNP) - 2024 Q3 - Quarterly Results
2024-10-24 11:46
Exhibit 99.1 Union Pacific Reports Third Quarter 2024 Results ● Third quarter earnings per diluted share of $2.75, up 10% ● Third quarter operating income up 11% ● Third quarter net income up 9% Omaha, Neb., October 24, 2024 – Union Pacific Corporation (NYSE: UNP) today reported 2024 third quarter net income of $1.7 billion, or $2.75 per diluted share. This compares to 2023 third quarter net income of $1.5 billion, or $2.51 per diluted share. "Our third quarter results demonstrate the success of our strateg ...
Buy Before Q3 Earnings: Union Pacific's $6.35B Quarter Could Be Coming
Seeking Alpha· 2024-10-22 16:30
I focus on long term growth and dividend growth investing. I follow both the US and the European stock markets, looking for undervalued stock and/or for high quality dividend growing companies that provide me with cash to reinvest. Over time, I have come to realize that profitability is a much safer driver of gains than low valuation. As a result, I give utmost importance to margins, free cash flow stability and growth, and returns on invested capital. I research stocks within my areas of competence and whe ...
Union Pacific (UNP) is a Top Dividend Stock Right Now: Should You Buy?
ZACKS· 2024-10-21 16:45
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed b ...
Wall Street's Insights Into Key Metrics Ahead of Union Pacific (UNP) Q3 Earnings
ZACKS· 2024-10-21 14:21
Analysts on Wall Street project that Union Pacific (UNP) will announce quarterly earnings of $2.76 per share in its forthcoming report, representing an increase of 10% year over year. Revenues are projected to reach $6.19 billion, increasing 4.2% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.3% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this peri ...