Union Pacific Corporation's (UNP - Free Report) first quarter 2017 earnings of $1.32 beat the Zacks Consensus Estimate of $1.23 per share. The bottom-line expanded 13.8% on a year-over-year basis.
Results were aided by higher revenues. The earnings beat pleased the investors. As a result, the stock gained in early trading.
Operating revenues of $5,132 million beat the Zacks Consensus Estimate of $4,997.7 million. Revenues increased 6.3% on a year over year basis. The bulk of revenues (93.4%) at Union Pacific are derived from freight in the reported quarter.
Freight revenues increased 6%, thereby boosting the top line. Freight revenues increased due to volume growth, increased fuel surcharge revenues among other factors.
Operating income in the first quarter climbed 6% year over year to $1.8 billion. Operating ratio (defined as operating expenses as a percentage of revenues) came in at 65.1%, flat year-over-year. During the quarter, the company bought back 7.5 million shares for $802 million.
Segment Details
Agricultural Products freight revenues were $942 million, up 7% year over year. Business volumes increased 6% year over year, while average revenue per car climbed 1%.
Automotive accounted for $504 million of freight revenues, down 1% year over year. Business volumes were down 2% and average revenue per car climbed 1% year over year.
Chemicals contributed $885 million to freight revenues, up 1% year over year. Volumes were down 4%, while average revenue per car improved 5%.
Coal revenues (freight) increased 25% year over year to $648 million. Volumes grew 16% and average revenue per car improved 8% year over year.
Industrial Products generated freight revenues of $907 million, up 9% year over year on an 1% volume growth. Average revenue per car was up 7%.
Intermodal segment freight revenues came in at $908 million, up 3% year over year. Volumes were flat while average revenue per car improved 3%.
Other revenues improved 3% to $338 million in the first quarter of 2017.
Liquidity
Union Pacific exited the quarter with cash and cash equivalents of $1,049 million, compared with $1,277 million at the end of 2016. Debt (due after 1 year) came in at $14, 310 million at the end of the quarter compared with $14,249 million at the end of 2016. Adjusted debt-to-capitalization ratio increased to 47.4% from 47.3% at 2016-end.
Other Key Releases Coming Up
Investors interested in the broader transportation space keenly await the first-quarter earnings reports of Spirit Airlines (SAVE - Free Report) , Copa Holdings (CPA - Free Report) and Air Lease Corp. (AL - Free Report) that are slated to be released on Apr 28, May 10 and May 4, 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.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Union Pacific Corporation's (UNP - Free Report) first quarter 2017 earnings of $1.32 beat the Zacks Consensus Estimate of $1.23 per share. The bottom-line expanded 13.8% on a year-over-year basis.
Results were aided by higher revenues. The earnings beat pleased the investors. As a result, the stock gained in early trading.
Operating revenues of $5,132 million beat the Zacks Consensus Estimate of $4,997.7 million. Revenues increased 6.3% on a year over year basis. The bulk of revenues (93.4%) at Union Pacific are derived from freight in the reported quarter.
Freight revenues increased 6%, thereby boosting the top line. Freight revenues increased due to volume growth, increased fuel surcharge revenues among other factors.
Operating income in the first quarter climbed 6% year over year to $1.8 billion. Operating ratio (defined as operating expenses as a percentage of revenues) came in at 65.1%, flat year-over-year. During the quarter, the company bought back 7.5 million shares for $802 million.
Segment Details
Agricultural Products freight revenues were $942 million, up 7% year over year. Business volumes increased 6% year over year, while average revenue per car climbed 1%.
Automotive accounted for $504 million of freight revenues, down 1% year over year. Business volumes were down 2% and average revenue per car climbed 1% year over year.
Chemicals contributed $885 million to freight revenues, up 1% year over year. Volumes were down 4%, while average revenue per car improved 5%.
Coal revenues (freight) increased 25% year over year to $648 million. Volumes grew 16% and average revenue per car improved 8% year over year.
Industrial Products generated freight revenues of $907 million, up 9% year over year on an 1% volume growth. Average revenue per car was up 7%.
Intermodal segment freight revenues came in at $908 million, up 3% year over year. Volumes were flat while average revenue per car improved 3%.
Other revenues improved 3% to $338 million in the first quarter of 2017.
Liquidity
Union Pacific exited the quarter with cash and cash equivalents of $1,049 million, compared with $1,277 million at the end of 2016. Debt (due after 1 year) came in at $14, 310 million at the end of the quarter compared with $14,249 million at the end of 2016. Adjusted debt-to-capitalization ratio increased to 47.4% from 47.3% at 2016-end.
Other Key Releases Coming Up
Investors interested in the broader transportation space keenly await the first-quarter earnings reports of Spirit Airlines (SAVE - Free Report) , Copa Holdings (CPA - Free Report) and Air Lease Corp. (AL - Free Report) that are slated to be released on Apr 28, May 10 and May 4, 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.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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