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The Zacks Consensus Estimate for UNP’s first-quarter earnings has been revised upward by 1.6% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the past four quarters, while missing the same in one.
Let’s see how things are shaping up for Union Pacific this earnings season.
Strong freight demand is expected to have boosted freight revenues in the first quarter. Higher volumes and core pricing gains are likely to have aided Union Pacific’s top line.
Higher revenue carloads and average revenue per car are likely to have driven revenues at the Bulk (Grain & grain products, Fertilizer, Food & refrigerated, Coal & renewables) unit. The Zacks Consensus Estimate for revenues at the Bulk segment suggests an approximate 20% increase from the year-ago reported number. The same for Industrial Products indicates an 18.7% rise from the year-ago reported figure. The consensus mark for revenues at the Premium segment hints at a 13% jump from the first-quarter 2021 reported number.
However, escalating operating expenses, primarily due to rising fuel prices, might have dented Union Pacific’s bottom line in the first quarter. Increase in operating expenses is likely to have led to a deterioration in operating ratio (operating expenses as percentage of revenues).
What Does the Zacks Model Say?
The proven Zacks model predicts an earnings beat for Union Pacific this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Union Pacific has an Earnings ESP of +0.06%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: J.B. Hunt carries a Zacks Rank #3.
Highlights of Q4 Earnings
Union Pacific’s fourth-quarter 2021 earnings of $2.66 per share surpassed the Zacks Consensus Estimate of $2.60. Moreover, the bottom line increased 12.7% on a year-over-year basis. Operating revenues of $5,733 million also beat the Zacks Consensus Estimate of $5,546.8 million. The top line climbed 11.5% on a year-over-year basis due to an uptick in freight revenues.
Other Stocks to Consider
Investors interested in the broader Transportation sector may also consider Landstar System (LSTR - Free Report) and Knight-Swift Transportation Holdings (KNX - Free Report) , as these stocks too possess the right combination of elements to beat on earnings this reporting cycle.
Landstar System has an Earnings ESP of +9.22% and is a Zacks #3 Ranked stock at present. LSTR will release first-quarter 2022 results on Apr 20.
Landstar’s first-quarter results are expected to reflect gains from an improved freight scenario in the United States. Higher truck rates, owing to tight truck capacity, are anticipated to have aided the March-quarter performance.
Knight-Swift has an Earnings ESP of +4.17% and is currently a #3 Ranked player. KNX will release first-quarter 2022 results on Apr 20.
Knight-Swift’s first-quarter results are expected to be aided by an improved freight scenario in the United States. Revenues at the Logistics segment are likely to have been strong due to an increase in load count and revenue per load.
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What's in the Offing for Union Pacific (UNP) in Q1 Earnings?
Union Pacific Corporation (UNP - Free Report) is slated to release first-quarter 2022 results on Apr 21, before market open.
The Zacks Consensus Estimate for UNP’s first-quarter earnings has been revised upward by 1.6% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the past four quarters, while missing the same in one.
Let’s see how things are shaping up for Union Pacific this earnings season.
Union Pacific Corporation Price and EPS Surprise
Union Pacific Corporation price-eps-surprise | Union Pacific Corporation Quote
Factors to Note
Strong freight demand is expected to have boosted freight revenues in the first quarter. Higher volumes and core pricing gains are likely to have aided Union Pacific’s top line.
Higher revenue carloads and average revenue per car are likely to have driven revenues at the Bulk (Grain & grain products, Fertilizer, Food & refrigerated, Coal & renewables) unit. The Zacks Consensus Estimate for revenues at the Bulk segment suggests an approximate 20% increase from the year-ago reported number. The same for Industrial Products indicates an 18.7% rise from the year-ago reported figure. The consensus mark for revenues at the Premium segment hints at a 13% jump from the first-quarter 2021 reported number.
However, escalating operating expenses, primarily due to rising fuel prices, might have dented Union Pacific’s bottom line in the first quarter. Increase in operating expenses is likely to have led to a deterioration in operating ratio (operating expenses as percentage of revenues).
What Does the Zacks Model Say?
The proven Zacks model predicts an earnings beat for Union Pacific this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Union Pacific has an Earnings ESP of +0.06%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: J.B. Hunt carries a Zacks Rank #3.
Highlights of Q4 Earnings
Union Pacific’s fourth-quarter 2021 earnings of $2.66 per share surpassed the Zacks Consensus Estimate of $2.60. Moreover, the bottom line increased 12.7% on a year-over-year basis. Operating revenues of $5,733 million also beat the Zacks Consensus Estimate of $5,546.8 million. The top line climbed 11.5% on a year-over-year basis due to an uptick in freight revenues.
Other Stocks to Consider
Investors interested in the broader Transportation sector may also consider Landstar System (LSTR - Free Report) and Knight-Swift Transportation Holdings (KNX - Free Report) , as these stocks too possess the right combination of elements to beat on earnings this reporting cycle.
Landstar System has an Earnings ESP of +9.22% and is a Zacks #3 Ranked stock at present. LSTR will release first-quarter 2022 results on Apr 20.
Landstar’s first-quarter results are expected to reflect gains from an improved freight scenario in the United States. Higher truck rates, owing to tight truck capacity, are anticipated to have aided the March-quarter performance.
Knight-Swift has an Earnings ESP of +4.17% and is currently a #3 Ranked player. KNX will release first-quarter 2022 results on Apr 20.
Knight-Swift’s first-quarter results are expected to be aided by an improved freight scenario in the United States. Revenues at the Logistics segment are likely to have been strong due to an increase in load count and revenue per load.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.