Union Pacific Corporation (NYSE:UNP) stock rose 0.26% (As on October 21, 11:51:22 AM UTC-4, Source: Google Finance) after the company reported better-than-expected third-quarter 2022 results. Operating income in the third quarter increased 8% year over year to $2,633 million. Total operating expenses rose 25% to $3,933 million. Operating ratio (operating expenses as a percentage of revenues) grew by 360 basis points to 59.9% in the year-ago quarter. Lower fuel prices positively impacted the operating ratio by 70 basis points. Union Pacific exited the third quarter of 2022 with cash and cash equivalents of $1,267 million compared with $788 million at the end of June 2022. Debt (due after a year) increased to $31,744 million at the end of the third quarter from $29,673 million at June 2022-end. In the reported quarter, Union Pacific repurchased 9.5 million shares at an aggregate cost of $2.1 billion.

UNP in the third quarter of FY 22 has reported the adjusted earnings per share of $3.19, beating the analysts’ estimates for the adjusted earnings per share of $3.06, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 18 percent to $6.57 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $6.44 billion. This is driven by higher fuel surcharge revenue, volume growth, and core pricing gains. Freight revenues increased 18% to $6,109 million. Business volumes, measured by total revenue carloads, were up 3%. Bulk (Grain & grain products, Fertilizer, Food & refrigerated, Coal & renewables) freight revenues were $1,959 million, up 16% year over year. Industrial freight revenues totaled $2,194 million, up 15% year over year. Business volumes, as measured by total revenue carloads, were up 3%.

Moreover, Quarterly freight car velocity was 191 daily miles per car, a 2% decline. Quarterly locomotive productivity was 124 gross ton-miles (GTMs) per horsepower day, a 2% decline. Average maximum train length increased 1% to 9,483 feet. Quarterly workforce productivity of 1,045 car miles per employee was flat. Fuel consumption rate of 1.056, measured in gallons of fuel per thousand GTMs, improved 1%. Union Pacific’s year-to-date reportable personal injury rate improved 20% to 0.80 per 200,000 employee-hours compared to 1.00 for year-to-date 2021.

For fiscal 2022, the company expects Full year carload growth to be ~3%, full year reported operating ratio around 60%, capital spending of $3.4 billion and full year share repurchases of $6.5 billion.