Union Pacific Earnings Cheat Sheet: Double-Digit Growth Again

S&P 500 (NYSE:SPY) component Union Pacific Corporation (NYSE:UNP) reported its results for the third quarter. Union Pacific links 23 states in the western two-thirds of the United States through its operating company, Union Pacific Railroad Company.

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Union Pacific Earnings Cheat Sheet for the Third Quarter

Results: Net income for the railroad company rose to $904 million ($1.85 per share) vs. $778 million ($1.56 per share) in the same quarter a year earlier. This marks a rise of 16.2% from the year earlier quarter.

Revenue: Rose 15.7% to $5.1 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: UNP beat the mean analyst estimate of $1.81 per share. Analysts were expecting revenue of $5.01 billion.

Quoting Management: “Union Pacific delivered top and bottom line record results in the third quarter,” said Jim Young, Union Pacific chairman and chief executive officer. “We’re clearly demonstrating how Union Pacific’s diverse franchise and value-added service offerings are driving record free cash flow and improved financial returns for our shareholders.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 16.5%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 20.1% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 10.4% and in the first quarter, the figure rose 23.8%.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of $1.59 versus a mean estimate of net income of $1.58 per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.81 a share to $1.77 over the last sixty days. Over the past sixty days, the average estimate for the fiscal year has reached $6.47 abs per share, a decline from $6.55.

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

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(Source: Xignite Financials)