Union Pacific Corp. (NYSE:UNP) saw its shares decline approximately 4% in premarket trading Thursday after the railroad operator reported first-quarter financial results that missed analyst expectations for both earnings and revenue.
Shares were trading around $211 before the market opened.
The company posted an adjusted earnings per share (EPS) of $2.70 for the first quarter of 2025.
This figure fell short of the $2.75 consensus estimate compiled by LSEG, although it was slightly higher than the $2.69 per share reported in the first quarter of 2024.
Other analyst estimates cited in reports ranged from $2.74 to $2.76 per share.
Quarterly revenue came in at $6.03 billion, narrowly missing the LSEG estimate of $6.08 billion and essentially flat compared to the $6.03 billion generated in the same period last year.
Union Pacific attributed the weaker-than-expected results primarily to lower fuel surcharge revenue and challenges related to business mix, including reported weakness in automotive shipments.
While the company saw a 7% increase in overall volume (revenue carloads) and a 4% rise in freight revenue excluding fuel surcharges, these gains were offset by the aforementioned factors.