Union Pacific’s stock sinks after profit, revenue falls shy of forecasts

/ / News

Shares of Union Pacific Corp. dropped 3.2% in premarket trading Thursday, after the railroad operator reported a third-quarter profit and revenue that fell short of expectations. Net income declined to $1.36 billion, or $2.01 a share, from $1.56 billion, or $2.22 a share, in the year-ago period. The FactSet consensus for earnings per share was $2.06. Revenue fell 11% to $4.92 billion, as core pricing gains were more than offset by lower volumes, to fall just shy of the FactSet consensus of $4.93 billion. Bulk revenue declined 12%, industrial revenue was down 18% and premium revenue slipped 1%. Quarterly workforce productivity increased 13% to quarterly record of 998 car miles per employee. The stock rose 10.3% year to date through Wednesday, while the Dow Jones Transportation Average has gained 7.6% and the Dow Jones Industrial Average has slipped 1.2%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.