Benzinga | Jul 22, 2021 01:15PM EDT

Union Pacific Shares Gain After Q2 Earnings Beat

* Union Pacific Corp (NYSE:UNP) reported second-quarter operating revenue growth of 30% year-over-year to $5.50 billion, beating the analysts' consensus of $5.33 billion.

* Business volumes, as measured by total revenue carloads, increased 22%.

* Freight revenue increased 29% Y/Y, with Bulk up 19%, Industrial up 24%, and Intermodal up 33%.

* The company's result reflects volume growth, core pricing gains, and productivity. Additionally, it also managed to reduce its carbon footprint, with a 3% improvement in fuel consumption rate.

* EPS improved by 63% Y/Y to $2.72, beating the consensus of $2.50.

* The company's operating ratio improved by 590 bps to 55.1%.

* Operating income increased ~50% Y/Y to $2.47 billion. Operating expenses increased by 17% Y/Y to $3.03 billion.

* Union Pacific repurchased 12.2 million shares during the quarter for $2.7 billion.

* Freight car velocity was 213 daily miles per car, a 6%Y/Y decline. Locomotive productivity was 140 gross ton-miles per horsepower day, an improvement of 3% Y/Y.

* The average maximum train length increased 9% to 9,410 feet. Average Revenue per Car increased 6% Y/Y to $2,449.

* Cash provided by operating activities year-to-date was $4.22 billion, compared to $4.39 billion a year ago.

* Price action: UNP shares traded higher by 1.52% at $220.53 on the last check Thursday.