Union Pacific reported earnings that beat expectations before the bell on Thursday.
The company also revealed revenue was better-than-anticipated, despite service disruptions from Hurricane Harvey that cut the railroad's performance in the last couple of months. Union Pacific rerouted some shipments around Houston through other parts of Texas and Mexico to maintain service during shut downs from the storm.
Expectations vs. results
- EPS: $1.50 per share vs. $1.49 per share expected by a Thomson Reuters survey of analysts.
- Revenue: $5.41 billion vs. $5.33 billion expected by Thomson Reuters.
Average revenue per car, a key metric for railroads, increased 5 percent from the same period last year.
The storm forced the railroad to close over 36 stations in the Houston area. Union Pacific says Harvey negatively impacted earnings by 4 cents. Rail infrastructure required repairs throughout the region and limited operations only resumed near the beginning of September.
Union Pacific announced in August it was cutting 500 managers and 250 railroad workers amid a broader effort to cut costs. In July, the company announced it plants to cut expenses by $350 million to $450 million by the end of the year.
Shares of Union Pacific climbed nearly 2 percent in midday trading.