SAN FRANCISCO (MarketWatch) — Union Pacific Corp. on Thursday reported a 51% jump in earnings in a quarter that showed a healing U.S. economy driving demand for the railroad operator to move more freight.

Union Pacific UNP, -0.18% shares, however, shed less than 1% to finish at $85.26 as investors pocketed some of the year’s strong gains.

Despite the dip, the stock is still up 33% since January.

The Omaha, Neb.-based railroad giant posted earnings of $778 million, or $1.56 a share, for the third quarter. That’s up from $514 million, or $1.01 a share, in the year-earlier period.

Revenue increased by 20% to $4.4 billion, from $3.7 billion.

Analysts had expected earnings of $1.46 a share with revenue of $4.35 billion, according to a FactSet Research survey.

“With just a couple of months remaining this year, it’s probably safe to say that we are on pace to make this a best-ever year for our railroad as the economy continues to grow and we haul more freight,” Chairman Jim Young said in a conference call.

Automotive freight led the quarter with a rise of 36%, followed by a 25% rise in industrial products.

RBC Capital Markets analyst Walter Spracklin mostly lauded the results, saying it should bode well for the rest of the railroad group.

“At first glance, the results look strong,” he said. “We think that perhaps the market might have been expecting a bit more of a beat, but nevertheless these results are solid.”