Why Union Pacific Stock Rose Today

Yahoo Finance ·

Shares of Union Pacific ( UNP +4.03% ) rallied on Thursday after the railroad operator raised its full-year profit growth forecast. Union Pacific's operating revenue climbed 12% year over year to $6.9 billion in the second quarter. Excluding fuel surcharges, the railroad giant's freight revenue rose 4%, driven by volume gains and price increases. Union Pacific's efficiency initiatives are also producing positive results. Trains are moving more quickly through its rail network. Freight car velocity increased 5% to 231 daily miles per car, while average terminal dwell decreased 7% to 19.7 hours. Fuel consumption rate also improved by 1% to 1.051 gallons per thousand gross ton-miles. Still, higher fuel costs negatively impacted the company's operating ratio -- operating expenses as a percentage of revenue -- which came in at 59.7% compared to 59% in the year-ago quarter.

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Union Pacific's (UNP) stock price rose 4.03% due to a 12% year-over-year increase in 2Q revenue to $6.9 billion, boosting expectations for 4Q earnings growth.

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