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Operating revenues of $5,860 million also beat the Zacks Consensus Estimate of $5,810 million. The top line climbed 17.2% on a year-over-year basis owing to an uptick in freight revenues (up 17% to $5,440 million). Freight revenues were boosted by a positive business mix, higher fuel surcharge revenue, volume growth and pricing gains. Business volumes, measured by total revenue carloads, were up 4% from the first-quarter 2021 level despite supply-chain disruptions.
Operating income in the first quarter increased 19% year over year to $2,377 million. Total operating expenses rose 16% to $3,483 million, mainly due to the 74% escalation in fuel expenses. Operating ratio (operating expenses as a percentage of revenues) improved to 59.4% from 60.1% in the year-ago quarter despite being hurt to the tune of 80 basis points by higher fuel prices. Notably, lower the value of the metric, the better. Union Pacific expects rising fuel prices to be hurt by rising fuel prices.
This currently Zacks Rank #3 (Hold) player’s first-quarter effective tax rate dipped to 23% from 23.5% in the year-ago quarter. In the first quarter, Union Pacific repurchased 11 million shares at an aggregate cost of $2.8 billion. You can seethe complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Segmental Performances
Bulk (Grain & grain products, Fertilizer, Food & refrigerated, Coal & renewables) freight revenues were $1,832 million, up 21% year over year. Revenue carloads and average revenue per car increased 12% and 8%, respectively, on a year-over-year basis.
Industrial freight revenues totaled $1,921 million, up 16% year over year. Both revenue carloads and average revenue per car increased 11% and 5%, respectively, on a year-over-year basis.
Freight revenues in the Premium division were $1,687 million, up 14% year over year. Revenue carloads fell 3%, while average revenue per car increased 17% on a year-over-year basis.
Other revenues increased 19% to $420 million in the first quarter.
Liquidity
Union Pacific exited the first quarter of 2022 with cash and cash equivalents of $909 million compared with $960 million at the end of 2021. Debt (due after a year) increased to $30,680 million at the end of the first quarter from $27,563 million at 2021 end. Debt-to-EBITDA ratio (on an adjusted basis) is 2.8 compared with the December 2021-end figure of 2.7.
J.B. Hunt reported better-than-expected first-quarter 2022 earnings numbers. Quarterly earnings of $2.29 per share surpassed the Zacks Consensus Estimate of $1.91. The bottom line surged 67.2% year over year on the back of higher revenues across all segments.
Total operating revenues of $3,488.6 million also outperformed the Zacks Consensus Estimate of $3,260.5 million. The top line jumped 33.3% year over year. JBHT currently carries a Zacks Rank #3.
CSX Corp’s first-quarter 2022 earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny despite the decrease in overall volumes as supply-chain issues continue to dent results. The bottom line improved 25.81% year over year owing to higher revenues, aided by increased shipping rates.
Total revenues of $3,413 million outperformed the Zacks Consensus Estimate of $3291.2 million. The top line increased 21.33% year over year. CSX carries a Zacks Rank of 3 at present.
United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss incurred as coronavirus concerns continue to weigh on air-travel demand.
Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million. UAL is presently Zacks #3 Ranked.
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Union Pacific (UNP) Q1 Earnings Beat Estimates, Rise Y/Y
Union Pacific Corporation (UNP - Free Report) reported better-than-expected first-quarter 2022 results.
Earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.55. Moreover, the bottom line increased 28.5% on a year-over-year basis.
Union Pacific Corporation Price, Consensus and EPS Surprise
Union Pacific Corporation price-consensus-eps-surprise-chart | Union Pacific Corporation Quote
Operating revenues of $5,860 million also beat the Zacks Consensus Estimate of $5,810 million. The top line climbed 17.2% on a year-over-year basis owing to an uptick in freight revenues (up 17% to $5,440 million). Freight revenues were boosted by a positive business mix, higher fuel surcharge revenue, volume growth and pricing gains. Business volumes, measured by total revenue carloads, were up 4% from the first-quarter 2021 level despite supply-chain disruptions.
Operating income in the first quarter increased 19% year over year to $2,377 million. Total operating expenses rose 16% to $3,483 million, mainly due to the 74% escalation in fuel expenses. Operating ratio (operating expenses as a percentage of revenues) improved to 59.4% from 60.1% in the year-ago quarter despite being hurt to the tune of 80 basis points by higher fuel prices. Notably, lower the value of the metric, the better. Union Pacific expects rising fuel prices to be hurt by rising fuel prices.
This currently Zacks Rank #3 (Hold) player’s first-quarter effective tax rate dipped to 23% from 23.5% in the year-ago quarter. In the first quarter, Union Pacific repurchased 11 million shares at an aggregate cost of $2.8 billion. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Segmental Performances
Bulk (Grain & grain products, Fertilizer, Food & refrigerated, Coal & renewables) freight revenues were $1,832 million, up 21% year over year. Revenue carloads and average revenue per car increased 12% and 8%, respectively, on a year-over-year basis.
Industrial freight revenues totaled $1,921 million, up 16% year over year. Both revenue carloads and average revenue per car increased 11% and 5%, respectively, on a year-over-year basis.
Freight revenues in the Premium division were $1,687 million, up 14% year over year. Revenue carloads fell 3%, while average revenue per car increased 17% on a year-over-year basis.
Other revenues increased 19% to $420 million in the first quarter.
Liquidity
Union Pacific exited the first quarter of 2022 with cash and cash equivalents of $909 million compared with $960 million at the end of 2021. Debt (due after a year) increased to $30,680 million at the end of the first quarter from $27,563 million at 2021 end. Debt-to-EBITDA ratio (on an adjusted basis) is 2.8 compared with the December 2021-end figure of 2.7.
Earnings Snapshots
Within the broader Transportation sector, J.B. Hunt Transport Services (JBHT - Free Report) , CSX Corporation (CSX - Free Report) and United Airlines (UAL - Free Report) recently reported first-quarter 2022 results.
J.B. Hunt reported better-than-expected first-quarter 2022 earnings numbers. Quarterly earnings of $2.29 per share surpassed the Zacks Consensus Estimate of $1.91. The bottom line surged 67.2% year over year on the back of higher revenues across all segments.
Total operating revenues of $3,488.6 million also outperformed the Zacks Consensus Estimate of $3,260.5 million. The top line jumped 33.3% year over year. JBHT currently carries a Zacks Rank #3.
CSX Corp’s first-quarter 2022 earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny despite the decrease in overall volumes as supply-chain issues continue to dent results. The bottom line improved 25.81% year over year owing to higher revenues, aided by increased shipping rates.
Total revenues of $3,413 million outperformed the Zacks Consensus Estimate of $3291.2 million. The top line increased 21.33% year over year. CSX carries a Zacks Rank of 3 at present.
United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss incurred as coronavirus concerns continue to weigh on air-travel demand.
Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million. UAL is presently Zacks #3 Ranked.