Union Pacific (NYSE:UNP) Issues Earnings Results

Key Points

• Union Pacific reported a quarterly earnings per share (EPS) of $3.03, surpassing analysts' expectations of $2.84, with revenues of $6.15 billion, also exceeding estimates.
• The company announced a dividend increase to $1.38 per share, up from $1.34, representing an annualized dividend of $5.52 and a yield of 2.46%.
• Union Pacific's stock rose by 1.9%, closing at $224.71, with a market capitalization of $134.26 billion and a price-to-earnings ratio of 19.52.

Union Pacific (NYSE:UNP - Get Free Report) announced its quarterly earnings results on Thursday. The railroad operator reported $3.03 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.84 by $0.19, Briefing.com reports. The business had revenue of $6.15 billion for the quarter, compared to analyst estimates of $6.09 billion. Union Pacific had a net margin of 28.43% and a return on equity of 41.73%. The company's revenue was up 2.4% on a year-over-year basis. During the same quarter last year, the firm earned $2.74 EPS.

Union Pacific Stock Up 1.9%

Union Pacific stock traded up $4.19 during mid-day trading on Friday, reaching $224.71. The stock had a trading volume of 8,254,381 shares, compared to its average volume of 3,405,370. The company has a market capitalization of $134.26 billion, a price-to-earnings ratio of 19.52, a PEG ratio of 2.20 and a beta of 1.05. The company has a 50-day moving average price of $227.17 and a two-hundred day moving average price of $231.03. Union Pacific has a one year low of $204.66 and a one year high of $258.07. The company has a debt-to-equity ratio of 1.86, a current ratio of 0.65 and a quick ratio of 0.61.

Union Pacific Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Friday, August 29th will be paid a $1.38 dividend. This is a boost from Union Pacific's previous quarterly dividend of $1.34. The ex-dividend date of this dividend is Friday, August 29th. This represents a $5.52 dividend on an annualized basis and a yield of 2.46%. Union Pacific's payout ratio is presently 48.29%.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the company. Raymond James Financial reissued a "strong-buy" rating on shares of Union Pacific in a research note on Tuesday, July 15th. Stephens cut their price objective on Union Pacific from $275.00 to $255.00 and set an "overweight" rating on the stock in a research report on Monday, April 28th. Evercore ISI cut their price objective on Union Pacific from $244.00 to $238.00 and set an "in-line" rating on the stock in a research report on Friday. Redburn Atlantic upgraded shares of Union Pacific from a "neutral" rating to a "buy" rating and set a $259.00 price target on the stock in a report on Wednesday, April 16th. Finally, Morgan Stanley cut their price target on shares of Union Pacific from $220.00 to $215.00 and set an "equal weight" rating on the stock in a report on Monday, July 7th. One analyst has rated the stock with a sell rating, nine have given a hold rating, sixteen have issued a buy rating and two have issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $259.46.

Institutional Inflows and Outflows

An institutional investor recently raised its position in Union Pacific stock. Acadian Asset Management LLC lifted its position in Union Pacific Corporation (NYSE:UNP - Free Report) by 40.4% during the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 2,312 shares of the railroad operator's stock after buying an additional 665 shares during the period. Acadian Asset Management LLC's holdings in Union Pacific were worth $546,000 as of its most recent SEC filing. Institutional investors own 80.38% of the company's stock.

About Union Pacific

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. The company offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, ethanol producers, renewable biofuel producers, and other agricultural users; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, petroleum, liquid petroleum gases, soda ash, and sand, as well as finished automobiles, automotive parts, and merchandise in intermodal containers.

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