Union Pacific (NYSE:UNP) Posts Earnings Results, Beats Expectations By $0.09 EPS

Key Points

• Union Pacific reported $3.08 EPS for the quarter, exceeding estimates by $0.11, with a net margin of 28.43% and a return on equity of 41.73%.
• Despite strong earnings, Union Pacific's stock fell 1.7% to $221.39 during midday trading, amid mixed analyst ratings and target price adjustments.
• Institutional investors own 80.38% of Union Pacific stock, with several funds increasing their stakes significantly in the recent quarter.

Union Pacific (NYSE:UNP - Get Free Report) announced its quarterly earnings results on Thursday. The railroad operator reported $3.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.99 by $0.09, Zacks reports. Union Pacific had a return on equity of 41.73% and a net margin of 28.43%.The firm had revenue of $6.24 billion during the quarter, compared to the consensus estimate of $6.24 billion. During the same period in the prior year, the firm earned $2.75 EPS. The firm's quarterly revenue was up 2.5% compared to the same quarter last year.

Union Pacific Stock Down 2.0%

Shares of Union Pacific stock traded down $4.48 during midday trading on Thursday, reaching $220.76. 944,502 shares of the company's stock traded hands, compared to its average volume of 3,548,887. The company's 50 day simple moving average is $225.06 and its 200 day simple moving average is $224.15. Union Pacific has a 52 week low of $204.66 and a 52 week high of $256.84. The company has a debt-to-equity ratio of 1.86, a quick ratio of 0.53 and a current ratio of 0.65. The company has a market cap of $130.93 billion, a price-to-earnings ratio of 19.18, a price-to-earnings-growth ratio of 2.35 and a beta of 1.07.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the stock. Argus cut shares of Union Pacific from a "buy" rating to a "hold" rating in a research report on Tuesday, August 12th. Raymond James Financial reissued a "strong-buy" rating on shares of Union Pacific in a report on Tuesday, July 15th. Morgan Stanley cut their target price 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. Baird R W raised shares of Union Pacific to a "hold" rating in a report on Tuesday, July 1st. Finally, Sanford C. Bernstein raised their target price on shares of Union Pacific from $271.00 to $286.00 and gave the stock an "outperform" rating in a report on Monday, July 21st. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $261.58.

Institutional Investors Weigh In On Union Pacific

A number of institutional investors and hedge funds have recently modified their holdings of UNP. Acadian Asset Management LLC raised its stake in shares of Union Pacific by 40.4% during the first quarter. Acadian Asset Management LLC now owns 2,312 shares of the railroad operator's stock worth $546,000 after buying an additional 665 shares during the last quarter. Main Street Financial Solutions LLC raised its stake in shares of Union Pacific by 1.6% during the second quarter. Main Street Financial Solutions LLC now owns 3,733 shares of the railroad operator's stock worth $859,000 after buying an additional 58 shares during the last quarter. HUB Investment Partners LLC increased its stake in Union Pacific by 10.0% in the second quarter. HUB Investment Partners LLC now owns 6,091 shares of the railroad operator's stock valued at $1,401,000 after purchasing an additional 554 shares in the last quarter. Alliancebernstein L.P. increased its stake in Union Pacific by 7.4% in the second quarter. Alliancebernstein L.P. now owns 1,528,426 shares of the railroad operator's stock valued at $351,660,000 after purchasing an additional 105,664 shares in the last quarter. Finally, Diversify Wealth Management LLC increased its stake in Union Pacific by 12.8% in the second quarter. Diversify Wealth Management LLC now owns 15,757 shares of the railroad operator's stock valued at $3,448,000 after purchasing an additional 1,782 shares in the last quarter. 80.38% of the stock is owned by institutional investors.

Union Pacific Company Profile

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.