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Union Pacific Corporation (UNP), headquartered in Omaha, Nebraska, provides rail transportation services through Union Pacific Railroad Company. Valued at $148.80 billion by market cap, the company offers transportation services for food, forest products, automobiles, agricultural products, coal, and chemicals. It links 23 states in the western two-thirds of the country by rail and operates from all major West Coast and Gulf Coast ports to eastern gateways. UNP also connects with Canada’s rail system and is the only railroad serving all six major Mexican gateways. The railroad major is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Thursday, Jul. 25.
Ahead of the event, analysts expect UNP to report a profit of $2.71 per share on a diluted basis, up 5.5% from $2.57 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on one other occasion.
For fiscal 2024, analysts expect UNP to report EPS of $11.16, up 6.8% from $10.45 in fiscal 2023.
UNP stock has underperformed the S&P 500’s ($SPX) 17.2% gains on a YTD basis, with shares down marginally during this period. Similarly, it underperformed the S&P 500 Industrial Sector SPDR’s (XLI) 11% gains over the same time frame.
On Apr. 25, UNP shares rose more than 5% after the company reported its Q1 results. Despite a challenging operating environment, the company reported EPS and revenue of $2.69 and $6.03 billion, higher than the Wall Street estimates of $2.52 and $5.98 billion, respectively. Its operating income rose 3% year over year to $2.37 billion. UNP’s fuel expenses fell 14% year over year to $658 million, and freight revenues declined 1% over the prior year quarter to $5.62 billion.
Analysts’ consensus opinion on UNP stock is bullish, with a “Moderate Buy” rating overall. Out of 21 analysts covering the stock, 12 advise a “Strong Buy” rating, two have a “Moderate Buy” rating, and seven recommend a “Hold.” The average analyst price target for UNP is $260.38, indicating a 6.8% potential upside from the current levels.
On the date of publication, Dipanjan Banchur 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.
