- Union Pacific‘s second-quarter earnings per share (EPS) were $3.15, surpassing the previous year’s $2.74 and exceeding the estimated $2.92.
- The company reported operating revenue of $6.15 billion, marking a 2.4% increase from the previous year, though slightly below the estimate of $6.17 billion.
- Freight revenue was $5.84 billion, reflecting a 3.6% year-over-year growth, and met market estimates.
- Bulk freight revenue rose by 10% to $1.90 billion, aligning with market expectations.
- Industrial freight revenue increased by 4.2% to $2.21 billion, slightly above the estimated $2.19 billion.
- Premium freight revenue decreased by 3.6% to $1.73 billion, below the $1.76 billion estimate.
- Intermodal revenue experienced a 3.3% decline to $1.10 billion, falling short of the $1.13 billion estimate.
- The operating ratio improved, dropping to 59% from 60% the previous year, meeting analyst estimates.
- Revenue per carload was $2,764, a slight 0.1% decrease from the previous year, closely matching the estimate of $2,763.
- Revenue ton-miles reached $107.55 billion, representing a significant 7.6% year-over-year increase, above the market estimate of $105.15 billion.
- Fuel costs reduced by 7.8% to $576 million, slightly better than the forecasted $579.7 million.
- The analyst recommendations include 20 buys, 10 holds, and 1 sell.
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Union Pacific on Smartkarma
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On Smartkarma, analysts from Baptista Research have been covering Union Pacific closely, providing valuable insights for investors. In the report “Union Pacific Just Doubled Houston Capacity—Will These Investments Turbocharge Growth?”, the analyst discusses the stable yet somewhat mixed financial performance of Union Pacific in the first quarter of 2025. Despite facing challenges like fuel prices and leap year impact, the company maintained an EPS of $2.70 and stable net income of $1.6 billion, indicating resilient internal operations.
Another report by Baptista Research, titled “Union Pacific Corporation: Its Efforts Towards Volume Growth & Market Resilience! – Major Drivers”, highlights the positive and challenging aspects of Union Pacific‘s performance in the fourth quarter of 2024. The company showed solid financial growth with quarterly net income hitting $1.8 billion and EPS rising by 7% to $2.91. This detailed analysis can aid investors in forming a balanced investment thesis about Union Pacific‘s future potential and market resilience.
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A look at Union Pacific Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have provided a comprehensive evaluation of Union Pacific Corporation using their unique Smart Scores system. With a moderately positive outlook across the board, Union Pacific scores indicate a promising future for the rail transportation company. While the Value score suggests there may be some areas for improvement in terms of valuation, the company’s scores for Dividend, Growth, Resilience, and Momentum stand at moderate levels, showcasing a stable and growing performance overall.
Union Pacific Corporation, a key player in the rail transportation sector, continues to show resilience and momentum in its operations. With a strong focus on hauling various goods across long-haul routes, including agricultural, automotive, and chemical products, the company’s strategic positioning connecting major ports and gateways in North America underpins its growth potential. This balanced performance across different Smart Scores factors sets a foundation for Union Pacific to navigate future challenges and capitalize on opportunities in the evolving transportation industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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