BUZZ - Despite quarterly earnings beating expectations, Union Pacific shares drop due to concerns over fuel costs

October 22 - **The share price of US railroad operator Union Pacific Corporation (UNP.N) fell nearly 2% in premarket trading, to $282

** Thanks to improved core pricing, the company’s third-quarter profit exceeded Wall Street expectations (link), but it noted that rising fuel prices will hit its results

** The Middle East conflict has pushed up energy prices, increasing fuel costs for transportation companies and putting pressure on profit margins in industries such as trucking, logistics, and aviation

** The company stated that higher fuel costs had a negative impact of 140 basis points on its operating ratio (OR), although the ratio still improved by 10 basis points to 59.1%

** The report showed that third-quarter adjusted earnings per share were $3.53, above analyst expectations of $3.47 — data compiled by London Stock Exchange Group (LSEG)

** Operating revenue this quarter was $7.2 billion, compared to $6.24 billion in the same period last year. Analysts had expected $7.13 billion

** As of the previous trading day’s close, the stock had gained about 25% so far this year

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