Market Overview

Earnings Outlook For Union Pacific

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On Thursday, October 22, Union Pacific (NYSE: UNP) will release its latest earnings report. Here is Benzinga's outlook for the company.

Net Income, Earnings, And Earnings Per Share

Earnings and earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equates to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see Union Pacific reporting earnings of $2.05 per share on sales of $4.96 billion. Union Pacific reported a per-share profit of $2.22 when it published results during the same quarter last year. Sales in that period totaled $5.52 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Thursday, earnings would be down 7.66%. Revenue would be down 10.08% from the same quarter last year. Union Pacific's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 1.52 1.90 2.06 2.33
EPS Actual 1.67 2.15 2.02 2.22
Revenue Estimate 4.37 B 5.08 B 5.27 B 5.63 B
Revenue Actual 4.24 B 5.23 B 5.21 B 5.52 B

Stock Performance

For a full 12 months, the return has risen by 18.61%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

 

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