Earnings Preview: Union Pacific

Jul.18.12 | About: Union Pacific (UNP)

Union Pacific Corporation (UNP) is scheduled to report its Q2 2012 results on July 19, 2012, before the market opens. The street expects EPS and revenue of $1.96 and $5.23B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from UNP and the news from its closest competitors.

Union Pacific Corporation Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $1.79 EPS, beating analyst estimates of $1.63.

Union Pacific Corporation EPS Historical Results vs Estimates

The consensus EPS estimate is $1.96 based on 25 analysts' estimates, up from $1.59 a year ago. Revenue estimates are $5.23B, up from $4.86B a year ago. The median target price by analysts for the stock is $132.00.

Average recommendation: Buy

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On March 15, 2012, Barclays Capital upgraded the company from Equal Weight to Overweight.
  • On March 7, 2012, Barclays Capital reiterated Equal Weight rating for the company.

Latest News

  • On June 25, 2012, PS Technology (PST), a wholly owned subsidiary of Union Pacific Corp announced it has acquired the Yard Control Systems division of Ansaldo STS USA. The acquisition boosts PST's robust enterprise management capabilities by adding rail yard process control and automation solutions.
  • On March 2, 2012, Union Pacific Corp announced that its Chairman, President and Chief Executive Officer James R. Young will take a medical leave of absence from his responsibilities as President and Chief Executive Officer while he is being treated for recently diagnosed pancreatic cancer.
  • On February 2, 2012, Union Pacific Corp announced that the Board of Directors has declared a quarterly dividend of $0.60 per share on its common stock, payable April 2, 2012, to stockholders of record February 29, 2012.

Competitors

Canadian National Railway Company (CNI), Canadian Pacific Railway (CP), CSX Corporation (CSX), and Norfolk Southern Corporation (NSC) are considered major competitors for Union Pacific and the table below provides the key metrics for these companies and the industry.

Union Pacific Corporation key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

UNP ChartClick to enlarge

UNP data by YCharts

Competitors' Latest Development

  • On June 29, 2012, Canadian Pacific Railway Ltd announced the appointment of Hunter Harrison as CP's President and Chief Executive Officer and a member of the Board of Directors.
  • On June 22, 2012, Canadian Pacific Railway Ltd and U.S. Silica Holdings Inc announced a multi-year agreement for the movement of frac sand from U.S. Silica's newest mining and processing facility in Sparta, Wisconsin.
  • On June 5, 2012, Canadian Pacific Railway Ltd announced that Paul G. Haggis was elected Chairman of the Company's Board of Directors.
  • On June 1, 2012, Canadian Pacific Railway Ltd announced that Canada's Labour Minister has passed the Restoring Rail Service Act by the Senate. The bill will resolve the labour disputes between the Canadian Pacific Railway and the Teamsters Canada Rail Conference and end the strike, which has been ongoing since May 23, 2012.
  • On January 23, 2012, CSX Corp. announced the appointments of Oscar Munoz as executive Vice President and Chief Operating Officer and Fredrik J. Eliasson as Executive Vice President and Chief Financial Officer (NASDAQ:CFO), effective immediately.

Technical Overview


The stock has a market capitalization of $56.27B and is currently trading at $118.15 with a 52 week range of $77.73 - $119.94. The stock's year-to-date performance has been 12.73%. It is currently trading above 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.