Shares of Union Pacific Corp. (NYSE: UNP) are up about 18% over the past 12 months, trailing only Canadian Pacific Railway Ltd. (NYSE: CP), up 21%, and Kansas City Southern (NYSE: KSU), up 20%. Norfolk Southern Corp. (NYSE: NSC) is flat for the year, and only CSX Corp. (NYSE: CSX) has posted a drop.
Union Pacific this morning reported second-quarter results that include earnings of $2.01 per share and revenue of $5.22 billion. The consensus estimates called for earnings per share (EPS) of $1.97 on revenue of $5.23 billion. Both EPS and revenue were all-time highs for the company.
The strength of railroad stocks is a little surprising given their dependence on hauling coal and the well-known lack of demand both for coal and for shipping the stuff. Where Union Pacific made up the slack in coal shipments was in its auto, chemicals, intermodal (container) and industrial products shipments. Coal and grain shipments fell.
The railroad also reported that diesel fuel prices fell 2% and that the company’s ratio of operating costs to revenue fell to 67%, another all-time best for Union Pacific. Regarding the rest of the year, Union Pacific’s CEO had this comment:
Looking ahead to the second half of the year, the global economic outlook has become more uncertain and coal volumes remain a challenge.
Shares of Union Pacific were up about 4% at $123.25 in early trading this morning. The 52-week range was $77.73 to $119.94.
Paul Ausick
Travel Cards Are Getting Too Good To Ignore (sponsored)
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.