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Union Pacific Corporation (UNP) Up on Q1 Earnings Beat
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Union Pacific Corporation's (UNP - Free Report) first quarter 2017 earnings of $1.32 beat the Zacks Consensus Estimate of $1.23 per share. The bottom-line expanded 13.8% on a year-over-year basis.
Results were aided by higher revenues. The earnings beat pleased the investors. As a result, the stock gained in early trading.
Operating revenues of $5,132 million beat the Zacks Consensus Estimate of $4,997.7 million. Revenues increased 6.3% on a year over year basis. The bulk of revenues (93.4%) at Union Pacific are derived from freight in the reported quarter.
Freight revenues increased 6%, thereby boosting the top line. Freight revenues increased due to volume growth, increased fuel surcharge revenues among other factors.
Operating income in the first quarter climbed 6% year over year to $1.8 billion. Operating ratio (defined as operating expenses as a percentage of revenues) came in at 65.1%, flat year-over-year. During the quarter, the company bought back 7.5 million shares for $802 million.
Segment Details
Agricultural Products freight revenues were $942 million, up 7% year over year. Business volumes increased 6% year over year, while average revenue per car climbed 1%.
Automotive accounted for $504 million of freight revenues, down 1% year over year. Business volumes were down 2% and average revenue per car climbed 1% year over year.
Chemicals contributed $885 million to freight revenues, up 1% year over year. Volumes were down 4%, while average revenue per car improved 5%.
Coal revenues (freight) increased 25% year over year to $648 million. Volumes grew 16% and average revenue per car improved 8% year over year.
Industrial Products generated freight revenues of $907 million, up 9% year over year on an 1% volume growth. Average revenue per car was up 7%.
Intermodal segment freight revenues came in at $908 million, up 3% year over year. Volumes were flat while average revenue per car improved 3%.
Other revenues improved 3% to $338 million in the first quarter of 2017.
Liquidity
Union Pacific exited the quarter with cash and cash equivalents of $1,049 million, compared with $1,277 million at the end of 2016. Debt (due after 1 year) came in at $14, 310 million at the end of the quarter compared with $14,249 million at the end of 2016. Adjusted debt-to-capitalization ratio increased to 47.4% from 47.3% at 2016-end.
Union Pacific Corporation Price, Consensus and EPS Surprise
Investors interested in the broader transportation space keenly await the first-quarter earnings reports of Spirit Airlines (SAVE - Free Report) , Copa Holdings (CPA - Free Report) and Air Lease Corp. (AL - Free Report) that are slated to be released on Apr 28, May 10 and May 4, respectively.
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
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Union Pacific Corporation (UNP) Up on Q1 Earnings Beat
Union Pacific Corporation's (UNP - Free Report) first quarter 2017 earnings of $1.32 beat the Zacks Consensus Estimate of $1.23 per share. The bottom-line expanded 13.8% on a year-over-year basis.
Results were aided by higher revenues. The earnings beat pleased the investors. As a result, the stock gained in early trading.
Operating revenues of $5,132 million beat the Zacks Consensus Estimate of $4,997.7 million. Revenues increased 6.3% on a year over year basis. The bulk of revenues (93.4%) at Union Pacific are derived from freight in the reported quarter.
Freight revenues increased 6%, thereby boosting the top line. Freight revenues increased due to volume growth, increased fuel surcharge revenues among other factors.
Operating income in the first quarter climbed 6% year over year to $1.8 billion. Operating ratio (defined as operating expenses as a percentage of revenues) came in at 65.1%, flat year-over-year. During the quarter, the company bought back 7.5 million shares for $802 million.
Segment Details
Agricultural Products freight revenues were $942 million, up 7% year over year. Business volumes increased 6% year over year, while average revenue per car climbed 1%.
Automotive accounted for $504 million of freight revenues, down 1% year over year. Business volumes were down 2% and average revenue per car climbed 1% year over year.
Chemicals contributed $885 million to freight revenues, up 1% year over year. Volumes were down 4%, while average revenue per car improved 5%.
Coal revenues (freight) increased 25% year over year to $648 million. Volumes grew 16% and average revenue per car improved 8% year over year.
Industrial Products generated freight revenues of $907 million, up 9% year over year on an 1% volume growth. Average revenue per car was up 7%.
Intermodal segment freight revenues came in at $908 million, up 3% year over year. Volumes were flat while average revenue per car improved 3%.
Other revenues improved 3% to $338 million in the first quarter of 2017.
Liquidity
Union Pacific exited the quarter with cash and cash equivalents of $1,049 million, compared with $1,277 million at the end of 2016. Debt (due after 1 year) came in at $14, 310 million at the end of the quarter compared with $14,249 million at the end of 2016. Adjusted debt-to-capitalization ratio increased to 47.4% from 47.3% at 2016-end.
Union Pacific Corporation Price, Consensus and EPS Surprise
Union Pacific Corporation Price, Consensus and EPS Surprise | Union Pacific Corporation Quote
Other Key Releases Coming Up
Investors interested in the broader transportation space keenly await the first-quarter earnings reports of Spirit Airlines (SAVE - Free Report) , Copa Holdings (CPA - Free Report) and Air Lease Corp. (AL - Free Report) that are slated to be released on Apr 28, May 10 and May 4, respectively.
Zacks Rank
Union Pacific currently carries a Zacks Rank # 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>