Union Pacific's stock jumps 3.9% after earnings top estimates

Union Pacific Corp.'s stock (UNP) jumped 3.9% in premarket trade Thursday, after the railroad operator posted better-than-expected first-quarter earnings. Omaha-based Union Pacific had net income of $1.6 billion, or $2.69 a share, in the quarter, compared with $1.6 billion, or $2.67 a share, in the year-earlier period. Revenue was flat at $6.031 billion compared with $6.056 billion a year ago. The FactSet consensus was for EPS of $2.51 and revenue of $5.974 billion. CEO Jim Vena said the numbers came in a "challenging freight market and normal winter conditions." The company said its profitability outlook is gaining momentum with strong service product, improving network efficiency and solid pricing. It plans to resume share buybacks in the second quarter. The volume outlook is "muted by international intermodal business loss, lower coal demand, and soft economic conditions," the company said in a statement. The stock has fallen 5.6% in the year to date, while the S&P 500 has gained 6%.

-Ciara Linnane

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04-25-24 0757ET

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