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Why Union Pacific Stock Is Higher Today

TheMotleyFool

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Union Pacific (NYSE: UNP) delivered disappointing quarterly results but announced a successor to embattled CEO Lance Fritz. Investors appear willing to overlook the quarter in favor of what lies ahead, sending shares of the railroad up by more than 11%.

Union Pacific wasn't on the fast track in the most recent quarter. The railroad reported earnings of $2.57 per share on revenue of $5.96 billion, missing expectations by $0.20 per share and $160 million in sales. Operating revenue was down 5% year over year on lower fuel surcharges and lower volumes.

The company's operating ratio, a measure of how much it costs to generate $1 worth of revenue, was 63% in the quarter, up 280 basis points from last year. A lower number is better.

Source Fool.com

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