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Key Takeaways
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Union Pacific said it faced an uncertain economic environment, and earnings and revenue missed forecasts.
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The freight train giant saw energy and automotive shipment sales slide.
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Union Pacific shares fell 4% Thursday morning.
Union Pacific (UNP) shares dropped Thursday as the big freight railroad operator missed quarterly profit and sales forecasts on slumping energy and automotive shipments and lower fuel surcharges.
The company reported first-quarter earnings per share (EPS) of $2.70 on essentially flat operating revenue of $6.03 billion. Analysts surveyed by Visible Alpha were looking for $2.75 and $6.07 billion, respectively.
The carrier's 7% increase in volume and higher prices were offset by "business mix, reduced fuel surcharge revenue, lower other revenue, and impact from leap year." Energy and specialized market freight revenue tumbled 7% to $633 million, automotive freight sales slid 5% to $581 million, and food and refrigerated shipment revenue was down 9% to $260 million.
CEO Jim Vena said Union Pacific "worked closely with our customers to meet their needs in an uncertain environment."
Including today's 4% declines, shares of Union Pacific have lost about 7.5% this year.
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