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What's in the Cards for Union Pacific (UNP) in Q2 Earnings?

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Union Pacific Corporation (UNP - Free Report) is scheduled to report second-quarter 2022 results on Jul 21, before market open.

The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 3.4%.

Union Pacific Corporation Price and EPS Surprise

Union Pacific Corporation Price and EPS Surprise

Union Pacific Corporation price-eps-surprise | Union Pacific Corporation Quote

Let’s see how things are shaping up for Union Pacific this earnings season.

Q2 Expectations

The Zacks Consensus Estimate for Union Pacific’s second-quarter 2022 revenues is pegged at $6.15 billion, indicating 11.7% growth year over year. The top line is likely to have been aided by an uptick in freight revenues. The Zacks Consensus Estimate for second-quarter freight revenues is pegged at $5.74 billion, indicating growth of 11.8% from the year-ago reported figure.

On the flip side, escalating operating expenses, primarily due to rising fuel prices, continue to bother Union Pacific’s bottom line. The Zacks Consensus Estimate for average fuel price per gallon consumed is pegged at $3.50, indicating growth of 62% from the year-ago reported figure. The Zacks Consensus Estimate for UNP’s second-quarter 2022 earnings has been revised downward by 3% in the past 90 days.

What Our Model Says

Our proven model does not conclusively predict 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 odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Union Pacific has an Earnings ESP of -1.69% and a Zacks Rank #3.

Highlights of Q1

Union Pacific’s earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.55. Moreover, the bottom line increased 28.5% on a year-over-year basis.

Operating revenues of $5,860 million also beat the Zacks Consensus Estimate of $5,810 million. The top line climbed 17.2% on a year-over-year basis owing to an uptick in freight revenues (up 17% to $5,440 million).

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on their second-quarter 2022 earnings:

Kirby (KEX - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank #2. KEX will release results on Jul 28. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kirby has an expected earnings growth rate of 282.14% for the current year. KEX delivered a trailing four-quarter earnings surprise of 7.7%, on average.

KEX has a long-term earnings growth rate of 12%. 

Southwest Airlines Co.(LUV - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank #3. Improved air-travel demand is likely to aid LUV’s results. LUV will release results on Jul 28.

Southwest has an expected earnings growth rate of 226.05% for the current year. LUV delivered a trailing four-quarter earnings surprise of 33.5%, on average.

Southwest has a long-term earnings growth rate of 6%.

Norfolk Southern Corporation (NSC - Free Report) has an Earnings ESP of +0.13% and a Zacks Rank #3. NSC will release results on Jul 27. Improved performance of the intermodal and merchandise segments is likely to aid results.

Norfolk has an expected earnings growth rate of 14.7% for the current year. NSC delivered a trailing four-quarter earnings surprise of 5.2%, on average.

Norfolk has a long-term earnings growth rate of 10.5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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