Union Pacific Corp Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Union Pacific Corp (NYSE:UNP) will unveil its latest earnings on Thursday, July 21, 2011. Union Pacific Corporation links 23 states in the western two-thirds of the country through its operating company, Union Pacific Railroad Company.

Union Pacific Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.58 per share, a rise of 12.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.62. Between one and three months ago, the average estimate moved down and dropped from $1.59 during the last month. For the year, analysts are projecting profit of $6.51 per share, a rise of 17.7% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported net income of $1.29 per share versus a mean estimate of profit of $1.31 per share. In fourth quarter of the last fiscal year, the company beat estimates by 8 cents.

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Wall St. Revenue Expectations: On average, analysts predict $4.74 billion in revenue this quarter, a rise of 13.4% from the year ago quarter. Analysts are forecasting total revenue of $19.2 billion for the year, a rise of 13.2% from last year’s revenue of $16.96 billion.

Analyst Ratings: Analysts are bullish on this stock with 20 analysts rating it as a buy, none rating it as a sell and seven rating it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 19.4%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 26.6% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 23.8% while it rose 40.7% in the fourth quarter of the last fiscal year and 50.5% in the third quarter of the last fiscal year.

The company’s gross margin shrank by 2.8 percentage points in the in the first quarter. Revenue rose 13.2% while cost of sales rose 22.8% to $1.6 billion from a year earlier.

Competitors to Watch: Kansas City Southern (NYSE:KSU), CSX Corporation (NYSE:CSX), Norfolk Southern Corp. (NYSE:NSC), Canadian National Railway (NYSE:CNI), Canadian Pacific Railway Ltd. (NYSE:CP), Genesee & Wyoming Inc. (NYSE:GWR), Providence & Worcester Railroad Co. (NASDAQ:PWX) and RailAmerica, Inc. (NYSE:RA).

Stock Price Performance: During April 19, 2011 to July 15, 2011, the stock price had risen $3.87 (4%) from $96.87 to $100.74. The stock price saw one of its best stretches over the last year between April 21, 2011 and May 3, 2011 when shares rose for eight-straight days, rising 8.1% (+$7.74) over that span. It saw one of its worst periods between January 13, 2011 and January 25, 2011 when shares fell for eight-straight days, falling 6.1% (-$5.95) over that span. Shares are up $8.89 (+9.7%) year to date.

(Source: Xignite Financials)

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