Union Pacific Stock Surges as Earnings Top Expectations, Thanks to Falling Fuel Costs

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$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$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]