Union Pacific incrementally took share from trucks in its fiscal Q1

on Apr 21, 2022
  • Union Pacific Corporation reports solid results for its fiscal first quarter.
  • CEO Lance Fritz discussed earnings on CNBC's "Squawk on the Street".
  • Higher fuel prices continue to be a headwind for the railroad company.

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Union Pacific Corporation (NYSE: UNP) opened nearly 2.0% up on Thursday after reporting solid results for its Q1. Shares, however, gave up the intraday gain later as the railroad company said fuel prices continue to be a headwind. As per CEO Lance Fritz:

Fuel has been a big hit. It’s the biggest single cost increase that impacted us in Q1. And then there were some cost increases because our service product in the back half of the quarter degraded a bit.

Notable figures in Union Pacific Q1 earnings report

  • Net income came in at $1.63 billion that translates to $2.57 per share.
  • In the same quarter last year, net income stood at $1.34 billion ($2.00 a share).
  • At $5.86 billion, revenue noted YoY growth of 17.2%, as per the earnings press release.
  • FactSet consensus was for $2.56 of EPS on $5.71 billion in revenue.
  • Operating expenses shot up nearly 16% as fuel expenses soared 73.7%.
  • Operating ratio jumped to 59.4%; ahead of the Street expectations.

CEO Fritz’ discussed results on CNBC’s ‘Squawk on the Street’

Freight car velocity and locomotive productivity was down 5.0% and 6.0%, respectively. Discussing results on CNBC’s “Squawk on the Street”, CEO Lance Fritz said:

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The economy is very strong, both industrial and consumer, and that’s giving us some pricing power. With trucks tight, it’s been a very good market. We are incrementally taking some share from trucks.

Other notable figures in the earnings report include a 12% increase in revenue per car load and a freight volume up 4.0%. Union Pacific is also hiring to ramp up productivity and is committed to reducing the excess freight car inventory, confirmed the chief executive.