Union Pacific Earnings: Remaining Agile

Union Pacific Corporation (NYSE:UNP) delivered a profit and met Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.50%.

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Union Pacific Corporation Earnings Cheat Sheet

Results: Net income increased 3.73% to $1 billion ($2.19 per diluted share) in the quarter versus a net gain of $964 million in the year-earlier quarter.

Revenue: Rose 2.78% to $5.25 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Union Pacific Corporation reported adjusted net income of $2.16 per share. By that measure, the company beat the mean analyst estimate of $2.16. It missed the average revenue estimate of $5.31 billion.

Quoting Management: “For 2013, we’re expecting to see many of the same challenges we faced last year,” Jack Koraleski, Union Pacific CEO states, “We’ll also be watching to see what happens in Washington and how it impacts potential economic growth…

…That said, we successfully navigated through the complexities of 2012, and we’ll continue to follow that same strategy going forward.  We’ll remain agile and leverage the strengths of our diverse franchise with a focus on creating value for our customers and generating strong returns for our shareholders again in 2013.”

Key Stats:

Revenue decreased 1.74% from $5.34 billion in the previous quarter. Net income decreased 4.03% from $1.04 billion in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $2.05 and has not changed. For the current year, the average estimate has moved down from a profit of $8.27 to a profit of $8.25 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)