Movement Alert｜Union Pacific Falls 3.09% in Regular Trading, merger optimism failed to offset broad railroad weakness

Market Focus10-23

On October 23, Union Pacific fell 3.09% in Regular Trading, trading near $289.33, with turnover of $130 million.

The immediate backdrop was management's statement that it is 99.999% sure the proposed merger with Norfolk Southern will win approval, but that upbeat M&A commentary did not support the shares as railroad stocks broadly moved lower, with Norfolk Southern down 3.03%, Canadian National Railway down 2.37%, CSX Corp down 2.24%, Canadian Pacific Kansas City down 1.98%, and FTAI Infrastructure down 1.59%.

That pullback came one day after Union Pacific reported third-quarter adjusted EPS of $3.53 on $7.197 billion of revenue, both above expectations, while reaffirming full-year EPS growth in the high-single-digit range. Analysts also lifted a price target to $352, but management disclosed that fuel costs rose sharply year over year, including per-gallon fuel prices increasing to $4.21 from $2.56, leaving margin pressure as an overhang.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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