Trade with Eva : Analytics in action: UNP

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Thursday, January 25, 2018

Union Pacific misses by $0.01 ex-tax gain, reports revs in-line

Reports Q4 (Dec) earnings of $1.53 per share, excluding $7.54/share tax gain, $0.01 worse than the Capital IQ Consensus of $1.54; revenues rose 5.5% year/year to $5.45 bln vs the $5.44 bln Capital IQ Consensus.
Fourth quarter business volumes, as measured by total revenue carloads, increased 1%; compared to 2016. Volume increases in industrial products and chemicals more than offset declines in agricultural products, automotive and coal. Intermodal volume was flat compared to 2016.
Freight rev: Industrial Products up 28%; Chemicals up 7%; Intermodal up 4%; Automotive down 1%; Agricultural Products down 4%; Coal down 5%.
"We are optimistic the economy will favor a number of our market segments leading to another year of positive volume growth. Increased unit volume, combined with inflation plus core pricing and G55-0 productivity initiatives, should result in another year of revenue growth [consensus +4.3%] and improved margins."

Union Pacific beats by $0.01, reports revs in-line :

Reports Q2 (Jun) earnings of $1.17 per share, $0.01 better than the Capital IQ Consensus of $1.16; revenues fell 12.1% year/year to $4.77 bln vs the $4.78 bln Capital IQ Consensus.
Quarterly freight revenue decreased 13% compared to 2Q15, as volume declines and lower fuel surcharge revenue more than offset core pricing gains.
UNP's 65.2% operating ratio was unfavorable by 1.1 points compared to2Q15.
The company repurchased 7 mln shares in 2Q16 at an aggregate cost of $602 mln.
2016 Outlook: "A soft global economy, the negative impact of the strong U.S. dollar on exports, and relatively weak demand for consumer goods will continue to pressure volumes through the second half of the year. However, we see potential bright spots in certain segments of our business if key economic drivers continue to strengthen as they have in recent weeks. Beyond the impact of the current macro environment, we are implementing a strategy that will make us a stronger company for the future..."