Union Pacific Corporation Set to Announce Q3 Earnings Amid Market Challenges
Union Pacific Corporation (UNP), based in Omaha, Nebraska, stands as a prominent transportation company and one of North America’s largest freight railroads. With a market cap of $147.84 billion, Union Pacific plays a crucial role in delivering efficient rail transportation services across various industries, supporting businesses and supply chains throughout the United States and internationally. The company plans to unveil its Q3 earnings before the opening bell on Thursday, October 24.
Analysts Project Growth in Earnings
Leading up to this earnings release, analysts anticipate that UNP will report a profit of $2.75 per share, reflecting a 9.6% increase from $2.51 in the same quarter last year. Notably, Union Pacific has consistently surpassed Wall Street’s earnings estimates for the last four quarters.
Solid Performance in Previous Quarter
In the last quarter, the company’s adjusted earnings reached $2.74 per share, exceeding the consensus estimate by 1.5%. This earnings victory was largely attributed to operational efficiencies and favorable pricing strategies.
Future Earnings Expectations
Looking to fiscal 2024, analysts predict that UNP will achieve an EPS of $11.06, which represents a 5.8% increase from $10.45 in fiscal 2023.
Stock Performance Relative to Market Standards
UNP stock has declined 1.4% year to date, considerably lagging behind the broader S&P 500 Index’s ($SPX) 21.9% gains and the iShares Transportation Average ETF’s (IYT) 8.2% returns during the same period.
Recent Stock Movements
Union Pacific’s stock experienced a slight dip on July 25 after the company reported Q2 revenue results that did not meet analyst expectations. Nevertheless, UNP bounced back with a 2.1% gain the following day, as investors reacted positively to the better-than-expected profits, driven by strong pricing power and increased shipping volumes.
Analyst Outlook
The overall sentiment regarding UNP stock remains moderately optimistic, with a “Moderate Buy” rating. Of the 25 analysts covering the stock, 14 recommend a “Strong Buy,” one suggests a “Moderate Buy,” while 10 propose holding the stock. UNP’s average analyst price target stands at $262.96, suggesting a potential upside of 8.5% from its current price.
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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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