Union Pacific shares jump after record gains that exceeded expectations

Shares of Union Pacific Corp. UNP,
rose 2.2% in premarket trading Thursday after the rail company reported record second-quarter results as profits and sales rose above expectations amid ongoing supply chain disruptions, particularly in the intermodal sector. Net income grew to $1.80 billion, or $2.72 per share, from $1.13 billion or $1.67 per share in the same period a year ago. The FactSet consensus for earnings per share was $2.55. Revenue rose 30% to $5.50 billion, beating the FactSet consensus of $5.36 billion. Bulk sales rose 19% to $1.65 billion, surpassing the FactSet consensus of $1.63 billion, while industrial sales rose 24% to $1.86 billion to beat expectations of $1.82 billion. surpass. Total revenue from car loads increases by 22% to 2.1 million. “The Union Pacific team leveraged volume growth, price increases and productivity to produce record quarterly results,” said Chief Executive Lance Fritz. “As we move into the second half of 2021, we will continue to work with our customers and the wider supply chain to increase fluidity and efficiently handle strong freight demand.” The stock is up 4.3% so far, while the Dow Jones Transportation Average DJT,
is up 17.5% and the Dow Jones Industrial Average DJIA,
won 13.7%.