Core Insights - Union Pacific (UNP) shares surged after the company reported better-than-expected earnings due to declining fuel costs [1][4] - The company’s fourth-quarter earnings per share (EPS) increased by 7% year-over-year to $2.91, surpassing analysts' expectations, while operating revenue slightly decreased by 1% to $6.12 billion [1][2] Financial Performance - Fuel costs dropped significantly by 23% to $581 million, with the average fuel price per gallon falling 24% to $2.41, marking the fourth consecutive quarter of fuel cost declines [2] - Union Pacific's freight car velocity improved by 1% to 219 daily miles per car, and workforce productivity increased by 6% to 1,118 car miles per employee [3] Future Outlook - The company projected that full-year EPS would align with its three-year compound annual growth rate (CAGR) in the range of high-single-digit to low-double-digit percentages [3] - However, Union Pacific cautioned that volumes could be affected by a mixed economic backdrop, coal demand, and challenging year-over-year international intermodal comparisons [3]

Core Viewpoint - Union Pacific Corporation (UNP) reported strong fourth-quarter 2024 earnings, with earnings per share of $2.91, exceeding the Zacks Consensus Estimate of $2.78, reflecting a year-over-year improvement of 7.4% driven by operational efficiency and favorable pricing [1][2]. Financial Performance - Operating revenues for the fourth quarter were $6.12 billion, slightly below the Zacks Consensus Estimate of $6.15 billion, marking a year-over-year decline of 0.6% due to lower fuel surcharge revenues and an unfavorable business mix [2]. - Freight revenues, which constitute 94.6% of total revenues, decreased by 0.2% to $5.79 billion, surpassing the estimate of $5.71 billion, while other revenues fell by 7% to $332 million [3]. - Total operating expenses decreased by 4% year over year to $3.6 billion, with fuel expenses dropping by 23% and other cost items declining by 22% [4]. Segment Performance - Bulk freight revenues were $1.86 billion, down 4% year over year, but better than the projected decline of 8.5%, with segmental revenue carloads also declining by 4% [5]. - Industrial freight revenues increased by 1% year over year to $2.09 billion, with segmental revenue carloads remaining flat [5]. - Premium division freight revenues rose by 3% year over year to $1.83 billion, with revenue carloads improving by 13% [6]. Liquidity and Debt - At the end of the fourth quarter, Union Pacific had cash and cash equivalents of $1.02 billion, down from $1.06 billion a year earlier, while debt decreased to $29.77 billion from $31.16 billion [7]. Outlook - For full-year 2025, Union Pacific anticipates that volume will be affected by mixed economic conditions and fluctuations in coal demand, but expects pricing gains to positively influence the operating ratio [8]. - The company aims for earnings per share growth aligned with a three-year CAGR target of high-single to low-double digits, while maintaining an industry-leading operating ratio and return on invested capital [8]. Capital Allocation - Union Pacific's long-term capital allocation strategy includes a capital plan of $3.4 billion and share repurchases between $4 billion and $4.5 billion [9].

Union Pacific (UNP) reported $6.12 billion in revenue for the quarter ended December 2024, representing a year-over-year decline of 0.6%. EPS of $2.91 for the same period compares to $2.71 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $6.15 billion, representing a surprise of -0.43%. The company delivered an EPS surprise of +4.68%, with the consensus EPS estimate being $2.78.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Union Pacific beats earnings expectations despite revenue challenges in Q4 2024.Major freight rail system operator Union Pacific (UNP 5.04%) reported mixed fourth-quarter and full-year 2024 earnings on Thursday, Jan. 23. The company reported EPS of $2.91, surpassing the market's consensus estimate of $2.79. However, revenue for the quarter came in slightly under expectations, reaching $6.1 billion against an anticipated $6.15 billion. Despite revenue setbacks linked to fuel surcharges and business mix, the ...

Core Viewpoint - Union Pacific reported quarterly earnings of $2.91 per share, exceeding the Zacks Consensus Estimate of $2.78 per share, and showing an increase from $2.71 per share a year ago, indicating a positive earnings surprise of 4.68% [1] Financial Performance - The company posted revenues of $6.12 billion for the quarter ended December 2024, which was 0.43% below the Zacks Consensus Estimate and a decrease from $6.16 billion year-over-year [2] - Over the last four quarters, Union Pacific has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] Stock Performance and Outlook - Union Pacific shares have increased approximately 3.4% since the beginning of the year, compared to a 3.5% gain in the S&P 500 [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $2.77 for the coming quarter and $12.03 for the current fiscal year [7] Industry Context - The Transportation - Rail industry, to which Union Pacific belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Union Pacific's stock performance [5]

Exhibit 99.1 Union Pacific Reports Fourth Quarter and Full Year 2024 Results Omaha, Neb., January 23, 2025 – Union Pacific Corporation (NYSE: UNP) today reported 2024 fourth quarter net income of $1.8 billion, or $2.91 per diluted share. These results include $40 million of labor expense related to the ratification of a crew staffing agreement. This compares to 2023 fourth quarter net income of $1.7 billion, or $2.71 per diluted share. Reported net income for full year 2024 was $6.7 billion, or $11.09 per d ...

Union Pacific Corporation (UNP) is scheduled to report fourth-quarter 2024 results on Jan. 23, before market open.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The Zacks Consensus Estimate for fourth-quarter 2024 earnings has been revised 0.4% upward in the past 60 days and is pegged at $2.78 per share. Additionally, the consensus mark implies a 2.6% uptick from the year-ago actual. The Zacks Consensus Estimate for fourth-quarter 2024 revenues is pegged at $6.15 billion, indicating ...

Union Pacific (NYSE: UNP ) owns and operates the largest rail network among the 5 publicly traded Class 1 railroads. It is no secret that it has been one of the most puzzling railroads for me . On oneI 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 g ...

In its upcoming report, Union Pacific (UNP) is predicted by Wall Street analysts to post quarterly earnings of $2.78 per share, reflecting an increase of 2.6% compared to the same period last year. Revenues are forecasted to be $6.15 billion, representing a year-over-year decrease of 0.2%.Over the last 30 days, there has been a downward revision of 0.8% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initi ...

Core Viewpoint - The market anticipates Union Pacific (UNP) to report a year-over-year increase in earnings despite lower revenues for the quarter ending December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Union Pacific is expected to post quarterly earnings of $2.78 per share, reflecting a year-over-year increase of 2.6%, while revenues are projected to be $6.15 billion, a decrease of 0.2% from the previous year [3]. - The consensus EPS estimate has been revised down by 0.81% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Union Pacific is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.18%, complicating predictions of an earnings beat [10][11]. - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, but Union Pacific currently holds a Zacks Rank of 3, making it difficult to predict a beat [8][11]. Historical Performance - In the last reported quarter, Union Pacific was expected to earn $2.76 per share but delivered $2.75, resulting in a surprise of -0.36%. Over the last four quarters, the company has beaten consensus EPS estimates three times [12][13]. Conclusion - Union Pacific does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors when deciding to invest in the stock ahead of its earnings release [16].