Union Pacific Q3 profit up 23% even with flat volume

OMAHA, Neb. (AP) — Union Pacific hauled in 23% more profit in the third quarter even though the total number of shipments it delivered remained flat overall.

The Omaha, Nebraska-based railroad said Thursday that it made $1.67 billion, or $2.57 per share in the quarter. That’s up from $1.36 billion, or $2.01 per share, a year ago when the economy was surging back from the worst of the coronavirus pandemic.

The results beat Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $2.48 per share.

Last year, volume plummeted in the first half of the year as restrictions designed to slow the spread of the coronavirus brought the economy to a crawl before rebounding sharply in the second half of the year as those restrictions began to be lifted.

The railroad said its revenue grew 13% to $5.57 billion in the quarter as it generated more money on nearly every category of freight with higher prices except automotive where that industry has been struggling to maintain production amid the ongoing chip shortages. Three analysts surveyed by Zacks expected $5.38 billion.