Erste Group Bank Expects Higher Earnings for Union Pacific

Key Points

• Erste Group Bank raised its FY2026 EPS estimate for Union Pacific to $13.12 from $13.08, above the $13.05 consensus, and forecasts FY2027 EPS of $14.22. The firm maintains a “Buy” rating.
• Union Pacific recently exceeded quarterly expectations, reporting $3.41 EPS and $6.86 billion in revenue, while revenue increased 11.5% year over year.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and a $325.72 target price. The company also increased its quarterly dividend to $1.42, equivalent to a 2.0% annual yield.

Union Pacific Corporation (NYSE:UNP - Free Report) - Research analysts at Erste Group Bank increased their FY2026 EPS estimates for shares of Union Pacific in a research report issued to clients and investors on Thursday, October 8th. Erste Group Bank analyst S. Lingnau now forecasts that the railroad operator will post earnings per share of $13.12 for the year, up from their prior forecast of $13.08. Erste Group Bank has a "Buy" rating on the stock. The consensus estimate for Union Pacific's current full-year earnings is $13.05 per share. Erste Group Bank also issued estimates for Union Pacific's FY2027 earnings at $14.22 EPS.

A number of other brokerages have also weighed in on UNP. Barclays reissued an "overweight" rating and set a $350.00 price objective (up from $315.00) on shares of Union Pacific in a report on Friday, July 24th. Citigroup reissued a "cautious" rating on shares of Union Pacific in a research report on Wednesday, October 7th. Robert W. Baird raised their target price on Union Pacific from $311.00 to $344.00 and gave the stock an "outperform" rating in a research note on Monday, July 27th. UBS Group raised Union Pacific from a "neutral" rating to a "buy" rating and lifted their price target for the stock from $310.00 to $339.00 in a research report on Wednesday, September 16th. Finally, TD Cowen reaffirmed a "buy" rating and set a $325.00 price target (up from $282.00) on shares of Union Pacific in a research report on Friday, July 24th. Two analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $325.72.

Union Pacific Trading Up 1.1%

NYSE UNP opened at $281.44 on Tuesday. Union Pacific has a 12-month low of $215.53 and a 12-month high of $315.99. The company has a fifty day simple moving average of $288.42 and a two-hundred day simple moving average of $275.55. The company has a current ratio of 0.99, a quick ratio of 0.82 and a debt-to-equity ratio of 1.40. The stock has a market cap of $167.20 billion, a P/E ratio of 22.79, a P/E/G ratio of 2.76 and a beta of 0.95.

Union Pacific (NYSE:UNP - Get Free Report) last released its earnings results on Thursday, July 23rd. The railroad operator reported $3.41 earnings per share for the quarter, topping the consensus estimate of $3.26 by $0.15. The company had revenue of $6.86 billion for the quarter, compared to the consensus estimate of $6.72 billion. Union Pacific had a net margin of 28.85% and a return on equity of 38.46%. Union Pacific's revenue was up 11.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.03 EPS.

Hedge Funds Weigh In On Union Pacific

A number of institutional investors have recently bought and sold shares of UNP. Perpetual Ltd boosted its stake in shares of Union Pacific by 6.1% in the third quarter. Perpetual Ltd now owns 669,328 shares of the railroad operator's stock valued at $182,144,000 after buying an additional 38,694 shares in the last quarter. Woodstock Corp grew its holdings in Union Pacific by 55.6% during the third quarter. Woodstock Corp now owns 1,540 shares of the railroad operator's stock worth $419,000 after acquiring an additional 550 shares during the period. Moody National Bank Trust Division grew its holdings in Union Pacific by 4.0% during the third quarter. Moody National Bank Trust Division now owns 7,394 shares of the railroad operator's stock worth $2,012,000 after acquiring an additional 283 shares during the period. Eastern Bank raised its position in Union Pacific by 2.6% in the third quarter. Eastern Bank now owns 214,567 shares of the railroad operator's stock worth $58,390,000 after acquiring an additional 5,380 shares in the last quarter. Finally, Greenwich Wealth Management LLC raised its position in Union Pacific by 14.4% in the second quarter. Greenwich Wealth Management LLC now owns 2,040 shares of the railroad operator's stock worth $555,000 after acquiring an additional 257 shares in the last quarter. 80.38% of the stock is owned by hedge funds and other institutional investors.

Union Pacific Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Monday, August 31st were issued a $1.42 dividend. This is a boost from Union Pacific's previous quarterly dividend of $1.38. The ex-dividend date was Monday, August 31st. This represents a $5.68 annualized dividend and a yield of 2.0%. Union Pacific's dividend payout ratio is currently 45.99%.

About Union Pacific

Union Pacific Corporation NYSE: UNP is a freight railroad company that operates one of the largest rail networks in North America. Through its principal subsidiary, Union Pacific Railroad, the company provides transportation services for businesses across the western two-thirds of the United States.

Union Pacific transports a broad range of commodities and manufactured goods, including agricultural products, automotive vehicles and parts, chemicals, coal, industrial products, forest products, and intermodal containers.

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