- Union Pacific Corp (NYSE:UNP) reported fourth-quarter operating revenue growth of 12% year-over-year to $5.73 billion, above the consensus of $5.62 billion. EPS of $2.66 topped the Street view of $2.61.
- The revenue increase was driven by higher fuel surcharge revenue, a positive business mix, and core pricing gains, partially offset by lower volumes.
- Freight Revenues increased by 10% Y/Y to $5.3 billion, with Bulk +16%, Industrial +14%, and Premium +1%.
- Business volumes, as measured by total revenue carloads, were down 4%.
- Operating expenses increased by 5% Y/Y to $3.3 billion, and the operating ratio was 57.4% compared to 61% a year ago.
- Operating income increased by 22% Y/Y to $2.44 billion, and margin expanded by 355 bps to 42.6%.
- Union Pacific generated cash from operating activities for FY21 of $9.03 billion, compared to $8.54 billion a year ago. Free cash flow was $3.52 billion.
- The company repurchased 5.8 million shares in the quarter at an aggregate cost of $1.4 billion.
- "Although uncertainty remains around COVID variants and supply chain disruptions, we see a positive demand environment in 2022 and continued traction from business development efforts driving growth as we deliver value to all our stakeholders," said Lance Fritz, Union Pacific chairman, president, and CEO.
- Price Action: UNP shares traded higher by 1.94% at $244.13 on the last check Thursday.
