What caused UNP's Q2 2024 earnings to exceed forecasts?

**Union Pacific's Q2 2024 earnings are expected to exceed forecasts due to a combination of cost-control measures and revenue growth.**

1. **Cost-Control Measures**: Union Pacific has focused on enhancing efficiency by deploying longer trains and increasing freight car velocity, which has helped keep operating expenses stable year over year in the fourth quarter of 2023 and reduced them by 3% in the first quarter of 2024. The company's total operating expenses of $3.66 billion declined 3% year over year in the first quarter of 2024. Fuel expenses plunged 14%, and expenses on purchased services and materials fell by 6%. Other cost items also declined 1% year over year.

|code|Ticker|Name|Date|Net Income|market_code|
|---|---|---|---|---|---|
|UNP|UNP.N|Union Pacific|2024 Q1|1.641E9|169|
|UNP|UNP.N|Union Pacific|2024 Q2|1.673E9|169|
|UNP|UNP.N|Union Pacific|2024 Q3|1.671E9|169|
|UNP|UNP.N|Union Pacific|2024 Q4|1.762E9|169|

2. **Revenue Growth**: Despite the freight market downturn impacting the top line, Union Pacific's revenue was down only.4% year-over-year in the latest quarter compared to the same quarter last year. The company's revenue was $6.03 billion for the quarter, compared to analyst estimates of $5.97 billion. This slight positive surprise can be attributed to the company's proactive approach to managing its operations and market conditions.
3. **Strategic Initiatives**: Union Pacific's cost-cutting approach and efficiency enhancements are key factors contributing to the company's improved financial performance. These measures have helped the company to mitigate the revenue decline from the freight downturn and improve its bottom line.

In summary, Union Pacific's Q2 2024 earnings are expected to exceed forecasts due to effective cost control, revenue growth, and strategic initiatives that have helped the company to manage the challenges posed by the freight market downturn.