Union Pacific Corporation Prepares to Release Q1 Earnings Report
Union Pacific Corporation (UNP), a major player in the United States railroad industry, has a market capitalization of $124.8 billion. Established in 1862 and headquartered in Omaha, Nebraska, the company specializes in transporting various materials such as grain, fertilizers, food products, and coal.
Upcoming Q1 Earnings Release
The railroad giant is scheduled to announce its Q1 results before the market opens on Thursday, April 24. Analysts project that UNP will report earnings of $2.78 per share, reflecting a 3.4% increase from the profit of $2.69 per share reported in the same quarter last year. Notably, Union Pacific has exceeded analysts’ consensus estimates in three out of the last four quarters, with only one quarter falling short. In its most recent quarter, the company reported EPS of $2.91, surpassing the consensus estimate by 4.7%.
Projected Growth for Fiscal 2025
For the full fiscal year 2025, expectations indicate that UNP will achieve an EPS of $12.01, marking a significant 8.3% increase from $11.09 reported in fiscal 2024. Looking further ahead, forecasts suggest that earnings may surge an additional 9.5% year-over-year, reaching $13.15 per share for fiscal 2026.
Stock Performance Overview
Over the past year, UNP shares have dropped 7.2%, underperforming against the S&P 500 Index’s gains of 4.7% and the Industrial Select Sector SPDR Fund’s increase of 1.3% during the same period.
Mixed Q4 Results and Analyst Sentiment
UNP’s stock price surged 5.2% on January 23 following the release of its mixed Q4 earnings report. Despite a slight decrease in overall operating revenues to $6.1 billion—due to lower fuel surcharges and an unfavorable business mix—the company reported an impressive 220 basis points improvement in its operating ratio, reaching 58.7%. Additionally, operating income grew by 5% to $2.5 billion, allowing Union Pacific to surpass Wall Street’s earnings estimates. Following the initial increase, UNP stock maintained upward momentum for the next two trading sessions.
Looking ahead, analysts express a moderately bullish outlook for UNP. The consensus rating is labeled as “Moderate Buy,” with 16 analysts issuing “Strong Buy” ratings, one “Moderate Buy,” eight “Holds,” and one “Strong Sell.” With a mean price target of $262.50, this represents a 17.4% premium over its current trading price.
On the date of publication, Aditya Sarawgi 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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