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Union Pacific Corporation's (UNP - Free Report) fourth quarter 2016 earnings of $1.39 beat the Zacks Consensus Estimate of $1.34 per share. The bottom-line climbed 6.11% on a year-over-year basis.
The bottom-line was aided by lower costs. The earnings beat pleased the investors. As a result, the stock gained in early trading.
Operating revenues of $5,168 million edged past the Zacks Consensus Estimate of $5,143.6 million. Revenues declined 1% on a year over year basis. The bulk of revenues at Union Pacific are derived from freight. A 1% decline in freight revenues contributed to the top line declining year–over–year basis.
Declining coal shipments weighed on the company's results yet again. Volumes slipped 3%, with coal playing the biggest culprit. Lower fuel surcharge revenues also hurt results.
Operating income in the fourth quarter climbed 2% year over year to $2 billion. Operating ratio (defined as operating expenses as a percentage of revenues) came in at 62% as compared to 63.2% a year ago. During the quarter, the company bought back $9.6 million shares for $940 million.
Segment Details
Agricultural Products freight revenues were $961 million, up 7% year over year. Business volumes increased 8% year over year, while average revenue per car was flat.
Automotive accounted for $517 million of freight revenues, down 6% year over year. Business volumes were down 3% and average revenue per car also fell 3% year over year.
Chemicals contributed $857 million to freight revenues, flat year over year. Volumes were down 5%, while average revenue per car improved 4%.
Coal revenues (freight) decreased 6% year over year to $699 million. Volumes declined 9% and average revenue per car improved 4% year over year.
Industrial Products generated freight revenues of $829 million, down 2% year over year on an 5% volume decline. Average revenue per car was up 4%.
Intermodal segment freight revenues came in at $969 million, flat year over year. Volumes declined 1% year over year. However, average revenue per car improved 1%.
Other revenues declined 3% to $336 million in the fourth quarter of 2016.
Union Pacific Corp. Price, Consensus and EPS Surprise
Union Pacific exited 2016 with cash and cash equivalents of $1,277 million, compared with $1,391 million at the end of 2015. Long-term debt stood at $14.25 billion at the end of 2016 compared with $13.61 billion at the end of 2015. Adjusted debt-to-capitalization ratio increased to 47.3% from 45.7% at 2015-end.
Upcoming Releases
Investors interested in the railroad space are keenly awaiting for fourth-quarter earnings reports from key players like Canadian National Railway Company (CNI - Free Report) , Norfolk Southern Corp. (NSC - Free Report) and Kansas City Southern in the coming days. Kansas City Southern is scheduled to report on Jan 20, while Canadian National and Norfolk Southern are scheduled to report on Jan 24 and Jan 25, respectively.
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Union Pacific Corp. (UNP) Up on Q4 Earnings Beat
Union Pacific Corporation's (UNP - Free Report) fourth quarter 2016 earnings of $1.39 beat the Zacks Consensus Estimate of $1.34 per share. The bottom-line climbed 6.11% on a year-over-year basis.
The bottom-line was aided by lower costs. The earnings beat pleased the investors. As a result, the stock gained in early trading.
Operating revenues of $5,168 million edged past the Zacks Consensus Estimate of $5,143.6 million. Revenues declined 1% on a year over year basis. The bulk of revenues at Union Pacific are derived from freight. A 1% decline in freight revenues contributed to the top line declining year–over–year basis.
Declining coal shipments weighed on the company's results yet again. Volumes slipped 3%, with coal playing the biggest culprit. Lower fuel surcharge revenues also hurt results.
Operating income in the fourth quarter climbed 2% year over year to $2 billion. Operating ratio (defined as operating expenses as a percentage of revenues) came in at 62% as compared to 63.2% a year ago. During the quarter, the company bought back $9.6 million shares for $940 million.
Segment Details
Agricultural Products freight revenues were $961 million, up 7% year over year. Business volumes increased 8% year over year, while average revenue per car was flat.
Automotive accounted for $517 million of freight revenues, down 6% year over year. Business volumes were down 3% and average revenue per car also fell 3% year over year.
Chemicals contributed $857 million to freight revenues, flat year over year. Volumes were down 5%, while average revenue per car improved 4%.
Coal revenues (freight) decreased 6% year over year to $699 million. Volumes declined 9% and average revenue per car improved 4% year over year.
Industrial Products generated freight revenues of $829 million, down 2% year over year on an 5% volume decline. Average revenue per car was up 4%.
Intermodal segment freight revenues came in at $969 million, flat year over year. Volumes declined 1% year over year. However, average revenue per car improved 1%.
Other revenues declined 3% to $336 million in the fourth quarter of 2016.
Union Pacific Corp. Price, Consensus and EPS Surprise
Union Pacific Corp. Price, Consensus and EPS Surprise | Union Pacific Corp. Quote
Liquidity
Union Pacific exited 2016 with cash and cash equivalents of $1,277 million, compared with $1,391 million at the end of 2015. Long-term debt stood at $14.25 billion at the end of 2016 compared with $13.61 billion at the end of 2015. Adjusted debt-to-capitalization ratio increased to 47.3% from 45.7% at 2015-end.
Upcoming Releases
Investors interested in the railroad space are keenly awaiting for fourth-quarter earnings reports from key players like Canadian National Railway Company (CNI - Free Report) , Norfolk Southern Corp. (NSC - Free Report) and Kansas City Southern in the coming days. Kansas City Southern is scheduled to report on Jan 20, while Canadian National and Norfolk Southern are scheduled to report on Jan 24 and Jan 25, respectively.
Zacks Rank
Union Pacific currently carries a Zacks Rank # 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>