
Owen Tucker-Smith of The Wall Street Journal reports that Union Pacific’s Q4 net income rose 7% to $1.76 billion, benefiting from lower fuel costs and higher freight volume. However, revenue dropped slightly to $6.12 billion. CSX saw a 17% decline in profit due to weak coal sales. He writes:
Union Pacific is benefiting from improvements in fuel efficiency and lower diesel prices.
The freight railroad said Thursday that its net income expanded 7% in the fourth quarter, reaching $1.76 billion, or $2.91 a share, compared with $1.65 billion, or $2.71 a share, a year earlier, as tighter fuel spending and gains in premium freight volumes offset almost flat revenue.
Analysts surveyed by FactSet expected earnings of $2.80 a share.
The Omaha, Neb.-based railroad, a bellwether for the U.S. economy, posted revenue of $6.12 billion, down from $6.16 billion a year earlier. Analysts expected $6.15 billion. Revenue was driven lower by a drop in fuel surcharge revenue and an unfavorable business mix, the company said, even while volume and core pricing picked up. […]
“Additionally, we are keeping a watchful eye on potential tariff changes that could further impact volumes,” Kenny Rocker, Union Pacific’s executive vice president for sales and marketing, said on the earnings conference call. […]
Revenue dropped 4% to $3.54 billion, as declines in coal and fuel surcharge revenue offset the benefits of price hikes and volume in merchandise and volume growth in intermodal. Wall Street had forecast higher quarterly revenue of $3.56 billion, according to FactSet.
CSX’s operating margin fell to 31.3% from 35.7% in the fourth quarter of 2023.
CSX shares were down 3.8% to $32.38 in after-hours trading Thursday.
Read more here.