Zacks Research Expects Increased Earnings for Union Pacific

Key Points

• Zacks Research has increased its FY2027 earnings per share (EPS) estimate for Union Pacific from $13.03 to $14.33, while the current consensus estimate stands at $11.99 per share.
• Union Pacific recently reported $3.03 EPS for its latest quarter, exceeding analysts' expectations of $2.84, with a revenue increase of 2.4% year-over-year.
• The company announced a quarterly dividend increase to $1.38 per share, representing an annualized dividend yield of 2.5%.

Union Pacific Corporation (NYSE:UNP - Free Report) - Equities researchers at Zacks Research upped their FY2027 earnings per share (EPS) estimates for shares of Union Pacific in a report released on Wednesday, August 13th. Zacks Research analyst Team now expects that the railroad operator will earn $14.33 per share for the year, up from their prior estimate of $13.03. The consensus estimate for Union Pacific's current full-year earnings is $11.99 per share.

A number of other analysts have also recently issued reports on UNP. Argus cut Union Pacific from a "buy" rating to a "hold" rating in a research note on Tuesday. Robert W. Baird assumed coverage on Union Pacific in a research report on Tuesday, July 1st. They set a "neutral" rating and a $231.00 price target for the company. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $263.00 price target on shares of Union Pacific in a research report on Monday, June 2nd. UBS Group upped their price target on Union Pacific from $238.00 to $240.00 and gave the stock a "neutral" rating in a research report on Friday, July 25th. Finally, Sanford C. Bernstein upped their price target on Union Pacific from $271.00 to $286.00 and gave the stock an "outperform" rating in a research report on Monday, July 21st. One equities research analyst has rated the stock with a sell rating, twelve have given a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, Union Pacific presently has a consensus rating of "Moderate Buy" and an average price target of $258.21.

Union Pacific Stock Down 0.2%

NYSE UNP traded down $0.50 during trading hours on Friday, reaching $221.02. 971,044 shares of the company's stock were exchanged, compared to its average volume of 3,332,693. The company's 50-day moving average is $227.11 and its two-hundred day moving average is $229.77. 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 quick ratio of 0.53 and a current ratio of 0.65. The company has a market capitalization of $131.07 billion, a price-to-earnings ratio of 19.20, a price-to-earnings-growth ratio of 2.17 and a beta of 1.05.

Union Pacific (NYSE:UNP - Get Free Report) last posted its earnings results on Thursday, July 24th. The railroad operator reported $3.03 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.84 by $0.19. Union Pacific had a return on equity of 41.73% and a net margin of 28.43%. The business had revenue of $6.15 billion during the quarter, compared to analysts' expectations of $6.09 billion. During the same period in the prior year, the business earned $2.74 EPS. Union Pacific's revenue for the quarter was up 2.4% compared to the same quarter last year.

Hedge Funds Weigh In On Union Pacific

A number of institutional investors have recently modified their holdings of UNP. Ontario Teachers Pension Plan Board purchased a new stake in shares of Union Pacific during the 4th quarter valued at $662,000. Regal Investment Advisors LLC increased its position in shares of Union Pacific by 23.9% during the 4th quarter. Regal Investment Advisors LLC now owns 2,391 shares of the railroad operator's stock valued at $545,000 after purchasing an additional 461 shares during the last quarter. Evergreen Capital Management LLC increased its position in shares of Union Pacific by 1.1% during the 4th quarter. Evergreen Capital Management LLC now owns 9,816 shares of the railroad operator's stock valued at $2,238,000 after purchasing an additional 103 shares during the last quarter. Wasatch Advisors LP increased its position in shares of Union Pacific by 5.6% during the 4th quarter. Wasatch Advisors LP now owns 18,922 shares of the railroad operator's stock valued at $4,315,000 after purchasing an additional 1,000 shares during the last quarter. Finally, Advisory Research Inc. grew its stake in shares of Union Pacific by 1.6% during the 4th quarter. Advisory Research Inc. now owns 6,650 shares of the railroad operator's stock worth $1,516,000 after acquiring an additional 104 shares during the period. 80.38% of the stock is owned by institutional investors and hedge funds.

Union Pacific Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Friday, August 29th will be given a dividend of $1.38 per share. The ex-dividend date of this dividend is Friday, August 29th. This is a positive change from Union Pacific's previous quarterly dividend of $1.34. This represents a $5.52 dividend on an annualized basis and a dividend yield of 2.5%. Union Pacific's payout ratio is currently 46.57%.

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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