Union Pacific Corporation Readies for Q4 Earnings Release Amid Mixed Market Performance
Union Pacific Corporation (UNP), headquartered in Omaha, Nebraska, stands out as one of North America’s largest freight railroads. With a robust market cap of $140.3 billion, the company offers efficient rail transportation solutions across various industries, serving businesses and supply chains across the U.S. and internationally. Investors are keenly anticipating its Q4 earnings report, set to be released before the market opens on Thursday, Jan. 23.
Analysts Predict Modest Profit Growth
Ahead of the earnings announcement, analysts predict that UNP will report a profit of $2.76 per share, which marks a 1.9% increase from $2.71 in the same quarter last year. The company has a solid track record, having exceeded Wall Street’s earnings estimates in three of the last four quarters.
Future Earnings Expectation Shows Promise
Looking ahead to fiscal 2024, analysts forecast that UNP’s EPS will reach $10.94, reflecting a 4.7% increase from $10.45 in fiscal 2023. For fiscal 2025, expectations are even more optimistic, anticipating a further rise to $12.05, or a 10.2% increase year-over-year.
Recent Market Performance: A Review
Over the past year, UNP’s stock has experienced a decline of 4.2%, significantly lagging behind the S&P 500 Index, which saw a 26.3% rise, and the iShares Transportation Average ETF (IYT), which gained 7.8% in the same period.
Mixed Reactions to Recent Earnings
After releasing its Q3 earnings on Oct. 24, Union Pacific’s stock took a hit, dropping nearly 4.4%. While the company reported a year-over-year revenue growth of 2.5%, totaling $6.1 billion, it missed analysts’ expectations due to a less favorable business mix and decreased fuel surcharge revenue. Despite meeting revenue expectations, the EPS of $2.75 fell short of the consensus estimate by 1.1%.
Analysts’ Outlook: A Moderate Buy
The overall consensus on UNP’s stock is moderately optimistic, holding a “Moderate Buy” rating. Out of 25 analysts, 14 recommend a “Strong Buy,” one a “Moderate Buy,” and 10 suggest a “Hold.”
Currently, UNP’s average analyst price target stands at $260.68, indicating a potential upside of 12.6% from current levels.
On the date of publication,
Kritika Sarmah
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
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