Union Pacific Beats Earnings and Settles with Canadian National, Boosting Norfolk Southern Merger

EarningsCorporate Action Impact 4

โดย Yahoo Finance·Read original

Summary · why it matters

Union Pacific reported a strong quarter and settled with Canadian National Railway, removing a major opponent to its proposed $71.5 billion acquisition of Norfolk Southern. Revenue rose 12% to $6.86 billion, beating the $6.71 billion expected, and adjusted earnings came in at $3.41 a share versus $3.24 expected. The company raised its full-year guidance to high-single-digit earnings growth. The settlement gives Canadian National expanded Midwest access and a stake in two jointly owned terminal railroads in exchange for dropping its opposition. The merger still faces opposition from BNSF, Canadian Pacific Kansas City, some shippers, and state attorneys general, and the Surface Transportation Board has not yet restarted its review.

Union Pacific Corporation ▲

Norfolk Southern Corporation ▲

Canadian National Railway Company ▲

Canadian Pacific Kansas City Limited ▼

Impact on stocks 4

Industrials± Mixed · 4 stocks

Union Pacific Corporation

▲ PositiveCapitalrelevance

Union Pacific beat earnings estimates, raised guidance, and settled with Canadian National, advancing its merger plan.

Norfolk Southern Corporation

▲ PositiveCapitalrelevance

Union Pacific's strong earnings and settlement boost prospects for the $71.5 billion acquisition of Norfolk Southern.

Canadian National Railway Company

▲ PositiveRegulationrelevance

Settlement with Union Pacific removes opposition to merger, gaining expanded Midwest access and terminal stakes.

Canadian Pacific Kansas City Limited

▼ NegativeCompetitionrelevance

Canadian National's settlement strengthens its position, while Canadian Pacific Kansas City remains opposed to the merger.

Off-coverage companies 1

BNSF RailwayPrivate▼ Negative

Competitionrelevance

BNSF opposes the merger, which could create a stronger competitor if approved.