UNP Earnings Prediction
The chart below shows how UNP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, UNP sees a -2.05% change in stock price 10 days leading up to the earnings, and a +1.47% change 10 days following the report. On the earnings day itself, the stock moves by +0.74%. This data can give you a slight idea of what to expect for the next quarter's release.
UNP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
6.09B
2.52%
1.40%
Gross Margin
69.53%
3.50%
0.84%
Operating Margin
39.67%
8.27%
-0.70%
Net Margin
27.43%
6.65%
-1.51%
EPS
2.75
9.56%
0.36%
No Data Available
UNP Earnings Analysis
Union Pacific Corp Corporation (UNP.N) Earnings Conference Call
Positive
Net Income Increase: Union Pacific reported a 9% increase in net income to $1.7 billion for Q3 2024, alongside a 10% improvement in earnings per share, reaching $2.75.
Q3 2024 Revenue Increase: Operating revenue for Q3 2024 was $6.1 billion, reflecting a 3% increase year-over-year, driven by a 6% increase in volume and a 4% rise in freight revenue.
Operating Ratio Improvement: The operating ratio improved by 310 basis points to 60.3%, demonstrating enhanced operational efficiency despite a challenging business mix.
Cash Flow Improvement: Year-to-date cash from operations totaled $6.7 billion, up $700 million from the previous year, with free cash flow nearly doubling, increasing by over $900 million.
Shareholder Returns Overview: Shareholder returns reached $3.2 billion year-to-date through dividends and share repurchases, including $738 million in repurchases during Q3.
Negative
Revenue Growth Slowdown: Operating revenue increased only 3% year-over-year, indicating a slowdown in growth despite a 6% increase in volume, suggesting potential challenges in pricing power.
Freight Revenue Challenges: Freight revenue growth was negatively impacted by a business mix shift, resulting in a 75 basis point reduction in revenue, highlighting margin pressures from lower average revenue per car in international intermodal shipments.
Other Revenue Decline: Other revenue declined by $73 million or 18%, driven by lower accessorials and reduced demand for auto parts shipments, indicating weakness in certain segments of the business.
Compensation Expense Increase: Compensation and benefits expense increased by 2% year-over-year, driven by wage inflation and higher workforce costs, which could pressure margins going forward.
Rising Tax Burden Impact: Income tax expense rose by 23% due to higher pre-tax income, indicating that while net income increased, the effective tax burden is also rising, potentially impacting future profitability.
UNP FAQs
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UNP Earning Call Sentiment
Earnings call transcript: Union Pacific Q3 2024 earnings beat expectations
UNP.N
2.27%Positive
Union Pacific's earnings call reflects strong financial performance, with improvements in net income, EPS, operating revenue, and operating ratio. The company's commitment to shareholder returns and positive free cash flow growth is notable. Despite challenges in coal demand and labor costs, the company maintains a strong balance sheet and optimistic guidance for 2024. The Q&A session highlighted management's focus on productivity and pricing strategies, with some unclear responses but no significant red flags. Overall, the sentiment is positive, likely resulting in a stock price increase of 2% to 8% over the next two weeks.