Union Pacific Rises After Fourth-Quarter Profit Tops Estimates

Shares of Union Pacific Corp. (UNP) - Get Report  rose after the company reported strong fourth-quarter earnings. 

The stock of the railroad rose 3.9% in Thursday trading to close at $160.34 a share. 

Earnings were $2.12 a share, beating Wall Street estimates of $2.06. Profit rose 33% from a year-earlier adjusted $1.53 a share. Net income was $1.55 billion. Revenue was $5.76 billion, a 6% increase that beat analysts' expectations of $5.74 billion. 

"We are optimistic that continued economic growth, improving service performance and the strength of our diverse franchise will drive positive volume and revenue growth in 2019," said Lance Fritz, chairman, president, and CEO of Union Pacific. 

The company has a long-term goal of decreasing its operating ratio and increase its operating margin. It's operating ratio increased to 62% over last year's 58%.

"We expect operating margins will increase as a result of solid core pricing gains and significant productivity benefits," Fritz said, adding that Union Pacific plans on "eliminating excess costs and improving the utilization of network resources." 

Union Pacific shares have risen 9% in the past year.