Union Pacific Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Union Pacific (NYSE:UNP) will unveil its latest earnings tomorrow, Thursday, January 24, 2013. Union Pacific links 23 states in the western two-thirds of the United States through its operating company, Union Pacific Railroad Company.

Union Pacific Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $2.16 per share, a rise of 8.5% 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 $2.20. Between one and three months ago, the average estimate moved down. It also has dropped from $2.17 during the last month. Analysts are projecting profit to rise by 22.8% compared to last year’s $8.25.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the third quarter, the company reported net income of $2.19 per share versus a mean estimate of profit of $2.19 per share. In the second quarter, the company beat estimates by 14 cents.

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A Look Back: In the third quarter, profit rose 15.3% to $1.04 billion ($2.19 a share) from $904 million ($1.85 a share) the year earlier, meeting analyst expectations. Revenue rose 4.7% to $5.34 billion from $5.1 billion.

Here’s how Union Pacific traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Wall St. Revenue Expectations: Analysts predict a rise of 3.9% in revenue from the year-earlier quarter to $5.31 billion.

Analyst Ratings: With 17 analysts rating the stock a buy, none rating it a sell and eight rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 35.1% in the first quarter and 27.6% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 15.8% in the fourth quarter of the last fiscal year, 13.9% in the first quarter and 7.5% in the second quarter before increasing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.02 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)