UNP reported $6.86 billion revenue, topping estimates, and raised full-year earnings guidance amid a pending $71.5 billion deal.
Union Pacific Corporation (UNP) posted a 12% revenue increase to $6.86 billion for the quarter, surpassing the $6.71 billion estimate. Adjusted earnings reached $3.41 per share, above the $3.24 expected, prompting the company to raise its full-year earnings growth guidance to high-single digits from mid-single digits.
Operating expenses climbed 13% to $4.1 billion, driven by a 63% surge in fuel costs linked to geopolitical tensions. The results follow a pending $71.5 billion merger with Norfolk Southern, down from an initial $85 billion valuation, which would create the first coast-to-coast U.S. railroad.
Shares rose about 2% in premarket trading after the earnings release and a key legal settlement related to the merger.