Union Pacific Corporation (NYSE:UNP) profit grows

Union Pacific Corporation (NYSE:UNP) stock rose 2.74% (As on Jan 21, 11:55:36 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 21. The company’s bottom line came in at $1.71 billion, compared with $1.38 billion, in last year’s fourth quarter. Operating ratio at the largest U.S. railroad operator by market value improved to 57.4% from 61% a year earlier. However, overall volume shipped during the quarter fell 4% as supply chain disruptions hit automotive and intermodal freight. During the fourth quarter, Quarterly freight car velocity of 197 daily miles per car, a 12% decline, Quarterly locomotive productivity was 129 gross ton-miles (GTMs) per horsepower day, a 9% decline, average maximum train length was 9,319 feet, a 2% increase, quarterly workforce productivity was 1,046 car miles per employee, a 1% improvement and Fuel consumption rate, measured in gallons of fuel per thousand GTMs, was flat.

UNP in the fourth quarter of FY 21 has reported the adjusted earnings per share of $2.66, beating the analysts’ estimates for the adjusted earnings per share of $2.61. The company had reported the adjusted revenue growth of 11.5 percent to $5.73 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $5.58 billion, according to Refinitiv data. The revenue increase was driven by higher fuel surcharge revenue, a positive business mix, and core pricing gains, partially offset by lower volumes. Freight Revenues increased by 10% Y/Y to $5.3 billion, with Bulk +16%, Industrial +14%, and Premium +1%. Business volumes, as measured by total revenue carloads, were down 4%. Operating expenses increased by 5% Y/Y to $3.3 billion, and the operating ratio was 57.4% compared to 61% a year ago. Operating income increased by 22% Y/Y to $2.44 billion, and margin expanded by 355 bps to 42.6%.

Additionally, Union Pacific generated cash from operating activities for FY21 of $9.03 billion, compared to $8.54 billion a year ago. Free cash flow was $3.52 billion. The company repurchased 5.8 million shares in the quarter at an aggregate cost of $1.4 billion.

On the other hand, Union Pacific Corp said COVID-19 cases among its staff and paid time off for people getting inoculated may hurt its ability to move freight in the current quarter, but that impact should still be less than the 4% slump in volume in the previous quarter.

Copyright © 2022. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.