Union Pacific Corp
UNP: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$563.00 | Cbgj | Mwlgrqtw |
Q4 Weather Slows Union Pacific's Service Recovery, but Firm Still Expects OR Gains in 2023
Wide-moat Class I railroad Union Pacific's top line grew 8% year over year, not far off our forecast, on core pricing gains and higher fuel surcharges. Total yield grew 8%, while total volume was up less than 1%. Year-over-year revenue growth slowed from 18% in the third quarter due to unfavorable mix (higher international intermodal and weaker forest product volume), winter weather disruption, and softening U.S. industrial production, partly offset by new business wins.