Based in Omaha, NE, Union Pacific Corporation (UNP) is the largest railroad in North America providing rail transportation services across 23 states in the U.S. Union Pacific also connects with Canada's rail systems and is the only railroad, serving all the six major gateways to Mexico.
Union Pacific has an impressive track record having delivered positive earnings surprises in three of the last four quarters, with an average beat of 2.16%.
Zacks Rank: Currently, Union Pacific has a Zacks Rank #3 (Hold), but that could change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Union Pacific missed on earnings. Earnings per share came in at $1.30, well short of the Zacks Consensus Estimate of $1.37. Lower-than-expected revenues contributed to the earnings miss.
Revenue: Revenues of $5.61 billion also missed the Zacks Consensus Estimate of $5.69 billion. Weakness in the coal, intermodal and chemicals units hurt results.
Key Stats to Note: Operating income witnessed an improvement of 7% year over year to $2 billion. Operating ratio (defined as operating expenses as a percentage of revenues) improved 230 basis points year over year to 64.8%. During the quarter, the company bought back almost 6.9 million shares for $807 million.
Stock Price: As a result of the lower-than-expected earnings and revenues reported by the company, the stock price took a hit and was down over 2% at the time of writing in pre-market trading.
Check back later for our full write up on this Union Pacific earnings report later!
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