Union Pacific Corporation’s UNP first-quarter 2018 earnings of $1.68 beat the Zacks Consensus Estimate of $1.65 per share. The bottom line expanded 27.3% on a year-over-year basis. Results were aided by higher revenues.
Operating revenues of $5,475 million also surpassed the Zacks Consensus Estimate of $5,370.8 million. Moreover, revenues increased 6.7% year over year. Higher freight revenues boosted the top line. The bulk of revenues (93.6%) at Union Pacific was derived from freight in the reported quarter.
Freight revenues grew 7%, boosting the top line. The uptick was owing to volume growth and increased fuel surcharge revenues among other factors.
Operating income in the first quarter rose 8% year over year to $1,939 million. Adjusted operating ratio (defined as operating expenses as a percentage of revenues) came in at 64.6%, reflecting an increase of 0.6 points. During the quarter, this Zacks Rank #3 (Hold) company bought back 9.3 million shares for $1.2 billion.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Segment Details
Agricultural Products freight revenues were $1,098 million, flat year over year. Revenue carloads decreased 4%year over year. Average revenue per car however increased 5%.
Freight revenues at the Energy division were $1,173 million, up 15% year over year. Revenue carloads increased 6%year over year. Average revenue per car increased 8%.
Industrial freight revenues were $1,340 million, up 6% year over year. Revenue carloads increased 2%year over year. Average revenue per car increased 4%.
Freight revenues at the Premium division were $1,511 million, up 7% year over year. Revenue carloads increased 2%year over year. Average revenue per car increased 5%.
Other revenues improved 4% to $353 million in the first quarter of 2018.
Union Pacific Corporation Price, Consensus and EPS Surprise
Union Pacific Corporation Price, Consensus and EPS Surprise | Union Pacific Corporation Quote
Liquidity
Union Pacific exited the quarter with cash and cash equivalents of $1,048 million compared with $1,275 million at the end of 2017. Debt (due after one year) came in at $15,697 million at the end of the quarter compared with $16,144 million at the end of 2017. Adjusted debt-to-capitalization ratio increased to 45.1% from 43.9% at 2017-end.
Upcoming Releases
Investors interested in the broader Zacks Transportation industry are keenly awaiting first-quarter earnings reports from key players like Copa Holdings, S.A. CPA , C.H. Robinson Worldwide, Inc. CHRW and Expeditors International of Washington, Inc. EXPD, in the coming days. While C.H. Robinson Worldwide is scheduled to report on May 1, Expeditors and Copa Holdings are scheduled to do the same on May 8 and May 9, respectively.
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