Union Pacific Stock Surges as Earnings Top Expectations, Thanks to Falling Fuel Costs | Global News Avenue

Union Pacific (UNP) Shares of major freight forwarders surged on Thursday after higher-than-expected earnings on lower fuel costs.

The shipper reported fourth-quarter earnings per share (EPS) rose 7% to $2.91 from the year-ago period, beating analysts’ expectations. Operating income fell 1% to $6.12 billion, with visible alpha adding slightly to forecasts.

Union Pacific’s revenue grew as fuel costs fell 23% to $581 million, while average fuel prices per gallon fell 24% to $2.41. This is the fourth consecutive quarter in which average fuel costs have declined.

The company also said truck speed increased 1% to 219 miles per vehicle and workforce productivity increased 6% to 1,118 miles per vehicle.

Union Pacific expects full-year EPS to be in line with three-year Compound Annual Growth Rate (CAGR) In the range of high digits to low double digits. However, it warned that could be “affected by the economic backdrop, the mix of coal demand and challenging international intermodal comparisons”.

Union Pacific shares were up nearly 5% in Thursday’s intraday trading and are up more than 8% since the start of the year.