The stock price of Union Pacific Corporation (NYSE:UNP), the largest rail transportation company in the United States, reached its new highest level at $162.30 per share after reporting strong financial results in the second quarter of 2013. The stock price of the company went up by nearly 2% on Thursday afternoon trading in New York.

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Union Pacific Corporation (NYSE:UNP) outperformed the expectations of Wall Street analysts after reporting $2.37 earnings per share or $1.11 billion. Its financial performance for the second quarter is 10% higher than its $2.10 earnings per share or $1 billion in the same period in the previous year.

Union Pacific beats estimates as shipments balance cargo volume

Based on data compiled by Bloomberg, the railroad company beat the $2.35 consensus earnings per share estimate of 28 analysts. In terms of revenue, Union Pacific Corporation (NYSE:UNP) posted $5.47 billion, slightly lower than the $5.5 billion estimate of analysts due to the decline of its carloads in the quarter.

Last quarter, Union Pacific Corporation (NYSE:UNP) achieved $1.6 billion operating income or $2.03 earnings per share. Its revenue was $5.3 billion.

During the period, the crude oil shipments of Union Pacific Corporation (NYSE:UNP) increased and the volume of its coal shipments stabilized. The company’s revenue from crude oil, auto, and coal shipments compensated for the decline of its cargo volume.

Union Pacific coal shipments increase as utilities balk at natural gas prices

Jack Koraleski, chief executive officer of Union Pacific Corporation (NYSE:UNP), previously projected that coal, which is the biggest cargo of the company will improve. The financial results of the company proved that his prediction was right as utilities returned to using coal amid the rising temperature and natural gas prices in the United States.

During the second quarter, Union Pacific Corporation (NYSE:UNP) reported revenue from coal cargoes as $975 million, an increase of 12%. In addition, its shipments of automobiles and industrial products also increased.

Commenting on the financial performance of the company, Citigroup analyst Christian Wetherbee said, “With coal volumes trending positively, we believe that Union Pacific stands to benefit from a solid mix tailwind.”

According to Union Pacific Corporation (NYSE:UNP), its total volume was 2.25 million carloads, down by 1%. However, its average revenue per car increased by 5.5%. Its operating ratio, which serves as industry gauge of expenses to revenue declined to 65.7%. Last quarter, its operating ratio was 69.1%.