Union Pacific Corporation’s (UNP) fourth-quarter 2023 earnings of $2.71 per share beat the Zacks Consensus Estimate of $2.56. The bottom line improved 1.5% on a year-over-year basis.Operating revenues of $6,159 million also beat the Zacks Consensus Estimate of $6,108.7 million. The top line was flat on a year-over-year basis on the back of increased volume and core pricing gains offset by reduced fuel surcharge revenue and business mix.Freight revenues, accounting for 94.2% of the top line, increased 1% to ...

| --- | --- | |------------------------------------------------------------------------|-------| | | | | EXECUTIVE SUMMARY FOURTH QUARTER 2023 Jim Vena Chief Executive Officer | | | 2 | | | --- | |------------------------------------------------------------------------------------------------------------------------------------------| | | | Executive Summary | | • Team demonstrated early success behind strategy of safety, service, and operational excellence | | • Volume and productivity offset inflationary ...

Union Pacific Corporation (NYSE:UNP) Q4 2023 Earnings Conference Call January 25, 2024 8:45 AM ET Company Participants Jim Vena - Chief Executive Officer Jennifer Hamann - Chief Financial Officer Kenny Rocker - Executive Vice President of Marketing and Sales Eric Gehringer - Executive Vice President of Operations Conference Call Participants Chris Wetherbee - Citigroup Walter Spracklin - RBC Capital Markets Scott Group - Wolfe Research Tom Wadewitz - UBS Jon Chappell - Evercore ISI Amit Mehrotra - Deutsche ...

For the quarter ended December 2023, Union Pacific (UNP) reported revenue of $6.16 billion, down 0.3% over the same period last year. EPS came in at $2.71, compared to $2.67 in the year-ago quarter.The reported revenue represents a surprise of +0.82% over the Zacks Consensus Estimate of $6.11 billion. With the consensus EPS estimate being $2.56, the EPS surprise was +5.86%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

Fourth quarter earnings per diluted share of $2.71, up 1% Fourth quarter net income up 1% Full year earnings per diluted share of $10.45, down 7% Full year net income down 9% OMAHA, Neb., Jan. 25, 2024 /PRNewswire/ -- Union Pacific Corporation (NYSE: UNP) today reported 2023 fourth quarter net income of $1.7 billion, or $2.71 per diluted share. This compares to 2022 fourth quarter net income of $1.6 billion, or $2.67 per diluted share. Reported net income for full year 2023 was $6.4 billion, or $10.45 per ...

Investors are always looking for stocks that are poised to beat at earnings season and Union Pacific Corporation (UNP) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Union Pacific is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pr ...

Analysts on Wall Street project that Union Pacific (UNP) will announce quarterly earnings of $2.56 per share in its forthcoming report, representing a decline of 4.1% year over year. Revenues are projected to reach $6.11 billion, declining 1.2% from the same quarter last year.The current level reflects a downward revision of 0.5% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections o ...

Union Pacific Corporation Conference Call Summary Company Overview - **Company**: Union Pacific Corporation (NYSE: UNP) - **Date**: November 14, 2023 - **Participants**: - Jim Vena - CEO - Jennifer Hamann - CFO - Eric Gehringer - EVP of Operations Key Industry Insights - **Safety and Operational Goals**: - Union Pacific aims to be the safest railroad in North America, focusing on reducing injuries and accidents [4][5] - The company emphasizes three pillars: safety, service, and operational excellence [5][7] - **Service Expectations**: - Union Pacific caters to a diverse customer base with varying service expectations, from high-speed parcel deliveries to bulk product movements [6][7] - The company plans to improve metrics beyond traditional measures like Train Performance Criteria (TPC) to better reflect service delivery [6][7] - **Operational Efficiency**: - The company is focused on achieving the best operating ratio and margins in North America through efficient operations and technology investments [8][12] - Car velocity is a key metric, with current figures around 216, with a target of reaching 220 [9][11] Financial Performance - **Volume Trends**: - Carloads are up 1% quarter-to-date, with strong performance in October attributed to grain harvest and intermodal business [16][17] - November figures show a slight decline in carloads, down to approximately 156,000 to 157,000 [18] - **Revenue and Inflation**: - Union Pacific is facing inflationary pressures, with expectations of 4% to 4.5% inflation for 2023, similar to 2022 [39] - The company aims to push prices to exceed inflation and recover lost margins, with a focus on productivity and revenue growth [40][41] Strategic Initiatives - **Delayering and Organizational Changes**: - The company has reduced management layers by 5% to improve decision-making efficiency and culture [21][23] - Employees affected by the restructuring were offered new positions within the company [21] - **Market Opportunities**: - Union Pacific sees significant growth potential in optimizing its network, particularly in coastal ports and cross-border operations with Mexico [14][15][16] - The company is focused on leveraging its speed advantage (70 mph) to attract more business from trucks to rail [15][47] Challenges and Outlook - **Economic Uncertainty**: - The company acknowledges potential economic slowdowns but remains optimistic about leveraging service excellence for growth [46][48] - Union Pacific plans to hold an Investor Day in late 2024 to provide a clearer growth outlook [48] - **Headwinds**: - Challenges include high inflation, labor costs, and the need to improve service consistency to build customer trust [24][39][43] Conclusion Union Pacific Corporation is strategically positioned to enhance its operational efficiency and service delivery while navigating inflationary pressures and economic uncertainties. The focus on safety, service, and operational excellence, combined with a commitment to leveraging its network, positions the company for potential growth in the competitive railroad industry.

Union Pacific Corporation (NYSE:UNP) Q3 2023 Earnings Conference Call October 19, 2023 8:45 AM ET Company Participants Jim Vena - Chief Executive Officer Jennifer Hamann - Chief Financial Officer Kenny Rocker - Executive Vice President of Marketing and Sales Eric Gehringer - Executive Vice President of Operations Conference Call Participants Ken Hoexter - Bank of America Fadi Chamoun - BMO Capital Markets Jason Seidl - TD Cowen Amit Mehrotra - Deutsche Bank Jordan Alliger - Goldman Sachs Brian Ossenbeck - J ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for Union Pacific Corporation [Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents Union Pacific Corporation's unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2023 and 2022, including income, financial position, cash flows, and equity statements with detailed notes [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q3 2023 operating revenues decreased to **$5.94 billion** from **$6.57 billion**, with net income falling to **$1.53 billion** from **$1.90 billion**, and diluted EPS to **$2.51** from **$3.05** Q3 2023 vs Q3 2022 Income Statement Highlights (Millions, except EPS) | Metric | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | Total Operating Revenues | $5,941 | $6,566 | | Operating Income | $2,177 | $2,633 | | Net Income | $1,528 | $1,895 | | Diluted EPS | $2.51 | $3.05 | Nine Months Ended Sep 30, 2023 vs 2022 Income Statement Highlights (Millions, except EPS) | Metric | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | | Total Operating Revenues | $17,960 | $18,695 | | Operating Income | $6,675 | $7,505 | | Net Income | $4,727 | $5,360 | | Diluted EPS | $7.75 | $8.54 | [Condensed Consolidated Statements of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Position) As of September 30, 2023, total assets increased to **$66.54 billion**, total liabilities decreased to **$52.54 billion**, and common shareholders' equity rose to **$14.00 billion** Financial Position Highlights (Millions) | Metric | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Current Assets | $3,813 | $3,952 | | Total Assets | $66,540 | $65,449 | | Total Current Liabilities | $5,304 | $5,520 | | Total Liabilities | $52,536 | $53,286 | | Total Common Shareholders' Equity | $14,004 | $12,163 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Nine-month operating cash flow decreased to **$5.98 billion** from **$7.07 billion**, with **$2.65 billion** used in investing and **$3.54 billion** in financing, reflecting reduced share repurchases Cash Flow Summary for Nine Months Ended Sep 30 (Millions) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Cash from Operating Activities | $5,984 | $7,070 | | Cash used in Investing Activities | $(2,650) | $(2,559) | | Cash used in Financing Activities | $(3,540) | $(4,210) | | Net Change in Cash | $(206) | $301 | - Share repurchases significantly decreased to **$705 million** in the first nine months of 2023, compared to **$5.50 billion** in the same period of 2022[20](index=20&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail freight revenues by commodity, stock-based compensation, retirement plans, debt facilities, commitments, contingencies, and share repurchase program status Freight Revenues by Commodity (Millions) | Commodity Group | Q3 2023 | Q3 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | Bulk | $1,766 | $1,959 | $5,420 | $5,604 | | Industrial | $2,057 | $2,194 | $6,160 | $6,206 | | Premium | $1,722 | $1,956 | $5,190 | $5,581 | | **Total Freight Revenues** | **$5,545** | **$6,109** | **$16,770** | **$17,391** | - The company has a **$2.0 billion** revolving credit facility expiring in May 2027 and was in compliance with its debt-to-EBITDA covenant as of September 30, 2023[60](index=60&type=chunk)[61](index=61&type=chunk) - Under the current share repurchase authorization (effective April 2022 to March 2025), the company has repurchased **19.6 million shares** as of September 30, 2023, with authority remaining for **80.4 million shares**[75](index=75&type=chunk)[76](index=76&type=chunk) - The company's personal injury liability was estimated to be between **$393 million** and **$503 million**, with an accrual recorded at the low end of the range. The environmental liability ending balance was **$263 million**[69](index=69&type=chunk)[71](index=71&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2023 financial results, noting a **9% decrease** in freight revenues due to lower volumes and average revenue per car, a **4% decrease** in operating expenses, and a deteriorated operating ratio of **63.4%** [Results of Operations](index=19&type=section&id=Results%20of%20Operations) Q3 2023 net income was **$1.5 billion** with a **63.4%** operating ratio, down from **$1.9 billion** and **59.9%** in Q3 2022, driven by a **9%** freight revenue drop and **4%** operating expense decrease - Q3 2023 earnings were **$2.51 per diluted share** on net income of **$1.5 billion**, down from **$3.05 per share** and **$1.9 billion** in Q3 2022[91](index=91&type=chunk) - Freight revenues decreased **9%** in Q3 2023, driven by a **7%** decrease in average revenue per car (ARC) and a **3%** decline in volume. The ARC decrease was caused by lower fuel surcharge revenues and a negative traffic mix[91](index=91&type=chunk)[96](index=96&type=chunk) - Operating expenses decreased **4%** in Q3 2023, primarily due to lower fuel prices and a one-time charge in 2022 for labor agreements. This was partially offset by inflation, increased workforce levels, and higher casualty costs[93](index=93&type=chunk)[107](index=107&type=chunk) Key Railroad Performance Measures | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | Freight car velocity (daily miles per car) | 200 | 191 | 5% | | Average terminal dwell time (hours) | 23.5 | 24.4 | (4)% | | Intermodal car trip plan compliance (%) | 75 | 62 | 13pts | | Manifest/Automotive car trip plan compliance (%) | 64 | 58 | 6pts | | Operating ratio (%) | 63.4 | 59.9 | 3.5pts | [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) Nine-month operating cash flow decreased to **$6.0 billion**, free cash flow to **$0.95 billion**, with a **$3.7 billion** capital plan and strong liquidity including **$750 million** cash and **$2.8 billion** available credit Cash Flow Summary (Nine Months Ended Sep 30, Millions) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Cash provided by operating activities | $5,984 | $7,070 | | Cash used in investing activities | $(2,650) | $(2,559) | | Cash used in financing activities | $(3,540) | $(4,210) | Free Cash Flow Reconciliation (Nine Months Ended Sep 30, Millions) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Cash provided by operating activities | $5,984 | $7,070 | | Cash used in investing activities | $(2,650) | $(2,559) | | Dividends paid | $(2,380) | $(2,362) | | **Free cash flow** | **$954** | **$2,149** | - The company's 2023 capital plan is expected to be approximately **$3.7 billion**, an increase of **9%** from 2022, to support infrastructure, safety, and growth projects[137](index=137&type=chunk) - As of September 30, 2023, the company had **$750 million** in cash and cash equivalents, plus **$2.8 billion** in available credit from its revolving credit and receivables facilities[144](index=144&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in Quantitative and Qualitative Disclosures About Market Risk from the 2022 Annual Report on Form 10-K - There were no material changes to market risk disclosures from the 2022 Annual Report on Form 10-K[156](index=156&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) CEO and CFO concluded disclosure controls were effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the Corporation's disclosure controls and procedures were effective to provide reasonable assurance as of the end of the period[158](index=158&type=chunk) - No changes were identified during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, the Corporation's internal control over financial reporting[159](index=159&type=chunk) [PART II. OTHER INFORMATION](index=31&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity security sales, other information, and exhibits [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including environmental matters with potential remediation liabilities, whose ultimate impact is difficult to predict - The company is involved in ongoing legal proceedings, claims, and litigation incidental to its business[161](index=161&type=chunk) - Union Pacific has received notices from the EPA and state agencies regarding potential liability for remediation costs at various sites across the U.S., including Superfund sites[162](index=162&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the risk factors detailed in the company's 2022 Form 10-K for a comprehensive discussion of potential risks - The report directs readers to the risk factors section of the 2022 Form 10-K for a discussion of potential risks and uncertainties[165](index=165&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q3 2023, no shares were repurchased under the public plan; **17,156 shares** were acquired from employees for stock option and tax obligations, with **80.4 million** shares remaining under authorization Q3 2023 Common Stock Repurchases | Period | Total Shares Purchased | Avg Price Paid Per Share | Purchased as Part of Plan | Remaining Authority | | :--- | :--- | :--- | :--- | :--- | | Jul. 2023 | 12,013 | $236.05 | - | 80,392,027 | | Aug. 2023 | 125 | $231.50 | - | 80,392,027 | | Sep. 2023 | 5,018 | $214.25 | - | 80,392,027 | | **Total** | **17,156** | **$229.64** | **-** | **N/A** | - The shares purchased during the quarter were delivered by employees to pay for stock option exercises and satisfy tax withholding obligations, not as part of the publicly announced repurchase program[166](index=166&type=chunk) [Other Information](index=32&type=section&id=Item%205.%20Other%20Information) EVP Eric J. Gehringer and CEO V. James Vena adopted Rule 10b5-1(c) trading plans in July and August 2023 for future common stock transactions - On July 28, 2023, EVP Eric J. Gehringer adopted a Rule 10b5-1 trading plan to sell up to **1,274 shares**[169](index=169&type=chunk) - On August 22, 2023, CEO V. James Vena adopted a Rule 10b5-1 trading plan to purchase up to **4,500 shares**[170](index=170&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) Exhibits filed with Form 10-Q include CEO and CFO certifications and financial statements in iXBRL format - Key exhibits filed include CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906[175](index=175&type=chunk) - The financial statements and notes are provided in Inline Extensible Business Reporting Language (iXBRL) format[175](index=175&type=chunk)