We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Union Pacific (UNP) Q2 Earnings Top & Rise Y/Y, Stock Up
Read MoreHide Full Article
United Pacific Corporation’s (UNP - Free Report) second-quarter 2019 earnings of $2.22 per share surpassed the Zacks Consensus Estimate by 10 cents. The bottom line also increased 12.1% on a year-over-year basis primarily due to lower costs. This outperformance on the earnings front seems to have found favor with investors. As a result, the stock gained in pre-market trading.
Operating revenues came in at $5,596 million, which edged past the Zacks Consensus Estimate of $5,576.7 million. The figure, however, decreased 1.3% year over year due to sluggish freight revenues (down 2%). The year over year decline was due to a 4% reduction in business volumes, measured by total revenue carloads. Notably, bulk of revenues (93.6%) at Union Pacific was derived from freight in the reported quarter.
Operating income in the second quarter increased 8% year over year to $2.3 billion. Operating expenses declined 7% to $3.3 billion. Operating ratio (defined as operating expenses as a percentage of revenues) improved to 59.6% from 63% a year-ago driven by this railroad operator’s efforts to control costs. Notably, lower the value of the metric the better.
Moreover, this Zacks Rank #4 (Sell) company bought back 3.7 million shares during the quarter for $639 million. Effective tax rate during the second quarter of 2019 came in at 23.7% compared with 22.1% a year ago.
Freight revenues in the Agricultural Products were $1,155 million, up 4% year over year. Revenue carloads came in flat year over year. However, average revenue per car increased 4%.
Freight revenues in the Energy division were $966 million, down 13% year over year. Also, revenue carloads fell 9% year over year. Moreover, average revenue per car decreased 4% year over year.
Industrial freight revenues totaled $1,494 million, up 4% year over year. Revenue carloads increased 2% year over year. Also, average revenue per car was up 2%.
Freight revenues in the Premium division were $1,621 million, down 2% year over year. Revenue carloads decreased 5% year over year. Average revenue per car increased 4% year over year.
Other revenues inched up 1% to $360 million in the second quarter of 2019.
Liquidity
The company exited the quarter with cash and cash equivalents of $1,049 million compared with $1,273 million at the end of 2018. Debt (due after one year) came in at $22,955 million at the end of the quarter compared with $20,925 million at the end of 2018. Debt-to-EBITDA ratio (on an adjusted basis) increased to 2.5 from 2.3 at 2018-end.
Upcoming Releases
Investors interested in the broader Transportation sector are keenly awaiting second-quarter 2019 earnings reports from key players like Kansas City Southern , Norfolk Southern Corp. (NSC - Free Report) and United Parcel Service (UPS - Free Report) . While Kansas City Southern will report second-quarter earnings on Jul 19, Norfolk Southern and UPS will announce the same on Jul 24.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Union Pacific (UNP) Q2 Earnings Top & Rise Y/Y, Stock Up
United Pacific Corporation’s (UNP - Free Report) second-quarter 2019 earnings of $2.22 per share surpassed the Zacks Consensus Estimate by 10 cents. The bottom line also increased 12.1% on a year-over-year basis primarily due to lower costs. This outperformance on the earnings front seems to have found favor with investors. As a result, the stock gained in pre-market trading.
Operating revenues came in at $5,596 million, which edged past the Zacks Consensus Estimate of $5,576.7 million. The figure, however, decreased 1.3% year over year due to sluggish freight revenues (down 2%). The year over year decline was due to a 4% reduction in business volumes, measured by total revenue carloads. Notably, bulk of revenues (93.6%) at Union Pacific was derived from freight in the reported quarter.
Operating income in the second quarter increased 8% year over year to $2.3 billion. Operating expenses declined 7% to $3.3 billion. Operating ratio (defined as operating expenses as a percentage of revenues) improved to 59.6% from 63% a year-ago driven by this railroad operator’s efforts to control costs. Notably, lower the value of the metric the better.
Moreover, this Zacks Rank #4 (Sell) company bought back 3.7 million shares during the quarter for $639 million. Effective tax rate during the second quarter of 2019 came in at 23.7% compared with 22.1% a year ago.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Union Pacific Corporation Price, Consensus and EPS Surprise
Union Pacific Corporation price-consensus-eps-surprise-chart | Union Pacific Corporation Quote
Segmental Performance
Freight revenues in the Agricultural Products were $1,155 million, up 4% year over year. Revenue carloads came in flat year over year. However, average revenue per car increased 4%.
Freight revenues in the Energy division were $966 million, down 13% year over year. Also, revenue carloads fell 9% year over year. Moreover, average revenue per car decreased 4% year over year.
Industrial freight revenues totaled $1,494 million, up 4% year over year. Revenue carloads increased 2% year over year. Also, average revenue per car was up 2%.
Freight revenues in the Premium division were $1,621 million, down 2% year over year. Revenue carloads decreased 5% year over year. Average revenue per car increased 4% year over year.
Other revenues inched up 1% to $360 million in the second quarter of 2019.
Liquidity
The company exited the quarter with cash and cash equivalents of $1,049 million compared with $1,273 million at the end of 2018. Debt (due after one year) came in at $22,955 million at the end of the quarter compared with $20,925 million at the end of 2018. Debt-to-EBITDA ratio (on an adjusted basis) increased to 2.5 from 2.3 at 2018-end.
Upcoming Releases
Investors interested in the broader Transportation sector are keenly awaiting second-quarter 2019 earnings reports from key players like Kansas City Southern , Norfolk Southern Corp. (NSC - Free Report) and United Parcel Service (UPS - Free Report) . While Kansas City Southern will report second-quarter earnings on Jul 19, Norfolk Southern and UPS will announce the same on Jul 24.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>