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Will Harvey Mar Union Pacific (UNP) Results in Q3 Earnings?
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Union Pacific Corporation (UNP - Free Report) is slated to release third-quarter 2017 results on Oct 26, before the market opens.
Last quarter, the company delivered a positive earnings surprise of 5.8%. Also, the company has an impressive earnings history, having surpassed the Zacks Consensus Estimate in three of the last four quarters with an average beat of 3.7%.
Let’s see what awaits the company in the third quarter.
Factors at Play
The company expects the Hurricane Harvey to hurt its bottom line to the tune of approximately 5 cents per share in the third quarter.
Additionally, the company expects its automotive unit to suffer in the third quarter. Sluggish auto production is likely to hamper results this yet-to-be-reported quarter. The Zacks Consensus Estimate for automotive revenues stands at $490 million, lower than $513 million reported in the previous quarter.
Units like agricultural products and chemicals are also expected to register below-par volumes in the quarter to be reported. For agricultural products, the Zacks Consensus Estimate stands at $917 million. While for chemicals, the metric stands at $892 million, slightly lower than the $898 million reported in second-quarter 2017.
Shares of the company have underperformed its industry in a month due to the aforementioned headwinds. The stock has lost 2.4% of its value versus the industry’s 0.3% gain during the period.
However, the improved coal scenario is likely to aid the company’s third-quarter results. The industrial products unit is expected to perform well in the third quarter. The Zacks Consensus Estimate for industrial products revenues stands at $988 million.
In addition, the company’s cost-cutting efforts to increase efficiencies are impressive. In a bid to raise efficiency for utilization of its resources in a better manner, Union Pacific announced that it intends to trim its workforce by up to 750 employees.
Earnings Whispers
Per our proven model, a company needs the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings surprise. However, that is not the case as highlighted below.
Zacks ESP: Union Pacific has an Earnings ESP of -0.34%as the Most Accurate estimate is pegged lower at $1.48 per share than the Zacks Consensus Estimate of $1.49. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Union Pacific carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s negative ESP leaves our surprise prediction inconclusive.
We caution against all Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Investors interested in the broader Transportation sector may consider Triton International Limited , Norfolk Southern Corporation (NSC - Free Report) and Expeditors International of Washington, Inc. (EXPD - Free Report) with the stocks comprising the right combination of elements to beat on earnings in their next releases.
Norfolk Southern has an Earnings ESP of +0.59% and carries a Zacks Rank of 3 as well. The company will reportthird-quarter 2017 resultson Oct 25.
Expeditors is also #3 Ranked with an Earnings ESP of +1.68%. The company will reportthird-quarter 2017 financial numbers on Nov 7.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Will Harvey Mar Union Pacific (UNP) Results in Q3 Earnings?
Union Pacific Corporation (UNP - Free Report) is slated to release third-quarter 2017 results on Oct 26, before the market opens.
Last quarter, the company delivered a positive earnings surprise of 5.8%. Also, the company has an impressive earnings history, having surpassed the Zacks Consensus Estimate in three of the last four quarters with an average beat of 3.7%.
Let’s see what awaits the company in the third quarter.
Factors at Play
The company expects the Hurricane Harvey to hurt its bottom line to the tune of approximately 5 cents per share in the third quarter.
Additionally, the company expects its automotive unit to suffer in the third quarter. Sluggish auto production is likely to hamper results this yet-to-be-reported quarter. The Zacks Consensus Estimate for automotive revenues stands at $490 million, lower than $513 million reported in the previous quarter.
Units like agricultural products and chemicals are also expected to register below-par volumes in the quarter to be reported. For agricultural products, the Zacks Consensus Estimate stands at $917 million. While for chemicals, the metric stands at $892 million, slightly lower than the $898 million reported in second-quarter 2017.
Shares of the company have underperformed its industry in a month due to the aforementioned headwinds. The stock has lost 2.4% of its value versus the industry’s 0.3% gain during the period.
However, the improved coal scenario is likely to aid the company’s third-quarter results. The industrial products unit is expected to perform well in the third quarter. The Zacks Consensus Estimate for industrial products revenues stands at $988 million.
In addition, the company’s cost-cutting efforts to increase efficiencies are impressive. In a bid to raise efficiency for utilization of its resources in a better manner, Union Pacific announced that it intends to trim its workforce by up to 750 employees.
Earnings Whispers
Per our proven model, a company needs the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings surprise. However, that is not the case as highlighted below.
Zacks ESP: Union Pacific has an Earnings ESP of -0.34%as the Most Accurate estimate is pegged lower at $1.48 per share than the Zacks Consensus Estimate of $1.49. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Union Pacific carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s negative ESP leaves our surprise prediction inconclusive.
We caution against all Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Union Pacific Corporation Price and EPS Surprise
Union Pacific Corporation Price and EPS Surprise | Union Pacific Corporation Quote
Stock to Consider
Investors interested in the broader Transportation sector may consider Triton International Limited , Norfolk Southern Corporation (NSC - Free Report) and Expeditors International of Washington, Inc. (EXPD - Free Report) with the stocks comprising the right combination of elements to beat on earnings in their next releases.
Triton International has an Earnings ESP of +2.04%. The Zacks #3 Ranked company is expected to report third-quarter earnings numbers on Nov 9. You can see the complete list of today’s Zacks #1 Rank stocks here.
Norfolk Southern has an Earnings ESP of +0.59% and carries a Zacks Rank of 3 as well. The company will reportthird-quarter 2017 resultson Oct 25.
Expeditors is also #3 Ranked with an Earnings ESP of +1.68%. The company will reportthird-quarter 2017 financial numbers on Nov 7.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>