Union Pacific Beats Profit Expectations, Eyes Growth

Union Pacific reported a 7% increase in fourth-quarter profit, reaching $1.76 billion or $2.91 per share, surpassing Wall Street's expectations of $2.80 per share. Despite a 1% decline in revenue to $6.12 billion due to reduced fuel surcharge revenue and an unfavorable business mix, the company managed to deliver more shipments with fewer employees, improving efficiency. Core pricing gains and a 23% drop in fuel expenses contributed to the improved profitability. Union Pacific's stock has slightly underperformed the market year-to-date, rising by 3.4% compared to the S&P 500's 3.5%. The company is optimistic about achieving high single-digit to low double-digit earnings growth over the next three years, despite a mixed economic backdrop expected to affect volumes in 2025.