Union Pacific (NYSE:UNP) shares rallied more than 10% Wednesday despite missing earnings and revenue expectations, as the company announced former chief operating officer Jim Vena as its new CEO.
The company reported second quarter earnings of $2.57 per share, $0.17 worse than the analyst estimate of $2.74, while revenue for the quarter came in at $6 billion, down 5% YoY, and below the consensus estimate of $6.12B.
The company said the YoY revenue decline was due to reduced fuel surcharge revenue, lower volumes, and an unfavorable business mix, although those headwinds were partially offset by core pricing gains.
Meanwhile, Vena has been appointed the top job at the company, effective August 14, months after CEO Lance Fritz said he was stepping down.
Vena has over 40 years of experience in the and returns to UNP after serving as its chief operating officer from 2019 to 2020.
"I am excited about returning to Union Pacific and look forward to the journey to be the safest, most reliable and most efficient railroad in the industry," said Vena. "My focus from day one will be to ensure the company delivers industry-leading customer and operating excellence, cultivates and empowers our employees, and cares for the communities in which we operate. These efforts will generate strong shareholder returns."
UNP also announced that Beth Whited, Union Pacific's executive vice president, sustainability and strategy, and chief human resources officer, has been appointed as president, reporting to Vena.