Investing.com -- Union Pacific Corporation reported fourth-quarter earnings that surpassed analyst expectations, driving its shares up 3.9% in response to the news.
The railroad operator posted adjusted earnings per share of $2.91 for the quarter, exceeding the analyst consensus of $2.77. Revenue came in at $6.12 billion, meeting analyst estimates. The company's fourth-quarter results included $40 million in labor expenses related to the ratification of a crew staffing agreement.
Union Pacific (NYSE:UNP)'s revenue carloads increased by 5% YoY, while its operating ratio improved by 220 basis points to 58.7%. This improvement came despite the unfavorable 70 basis point impact from the crew staffing agreement ratification.
"Our strong fourth quarter results represent a great capstone to a very successful year for Union Pacific," said Jim Vena, Union Pacific Chief Executive Officer. "The team has fully embraced our strategy to lead the industry in safety, service, and operational excellence."
For the full year 2024, Union Pacific reported earnings per diluted share of $11.09, up 6% from the previous year. The company's operating revenue for the year increased by 1% to $24.3 billion, driven by higher volume and core pricing gains.
Looking ahead to 2025, Union Pacific expects volume to be impacted by a mixed economic backdrop, coal demand, and challenging YoY international intermodal comparisons. The company anticipates earnings per share growth consistent with its 3-year CAGR target of high-single to low-double digits.
Union Pacific plans a capital expenditure of $3.4 billion for 2025 and aims to repurchase $4.0 to $4.5 billion in shares, maintaining its long-term capital allocation strategy.