Yahoo Finance Union Pacific (UNP) Gears Up for Q4 Earnings: What's in Store?
Union Pacific Corporation UNP is scheduled to report fourth-quarter 2023 results on Jan 25 before market open.
The Zacks Consensus Estimate for quarterly earnings has improved marginally over the past 60 days.
However, UNP has a disappointing earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the preceding four quarters and missing twice, the average miss being 0.78%.
Union Pacific Corporation Price and EPS Surprise
Union Pacific Corporation price-eps-surprise | Union Pacific Corporation Quote
Given this backdrop, let’s check out the factors that might have influenced Union Pacific’s performance in the quarter under review.
We expect Union Pacific’s performance to have been affected by soft revenues due to weak freight demand. The Zacks Consensus Estimate for quarterly revenues is currently pegged at $6.1 billion, indicating a 1.5% decline from fourth-quarter 2022 actuals.
Freight revenues account for the bulk of the top line. We estimate the metric to decline marginally from fourth-quarter 2022 levels.
On the flip side, we expect the average fuel cost per gallon to be down 12.7% from the year-ago levels to $3.23.
What Our Model Says
Our proven model predicts an earnings beat for UNP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Union Pacific currently has an Earnings ESP of +1.99% (the Most Accurate Estimate is currently pegged at $2.59 per share, 5 cents above the Zacks Consensus Estimate) and a Zacks Rank #3.
Highlights of Q3
Union Pacific's third-quarter 2023 earnings of $2.51 per share beat the Zacks Consensus Estimate of $2.45. However, the bottom line plunged 21.3% on a year-over-year basis. Operating revenues of $5,941 million missed the Zacks Consensus Estimate of $6,002 million. The top line tumbled 9.5% on a year-over-year basis due to reduced fuel surcharge revenues, lower volumes and an unfavorable business mix.
Other Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these, too, have the right combination of elements to beat on their fourth-quarter 2023 earnings.
American Airlines Group Inc. AAL has an Earnings ESP of +43.10% and a Zacks Rank #2. AAL will release results on Jan 25.
The Zacks Consensus Estimate for AAL’s fourth-quarter 2023 earnings has been revised upward by more than 100% in the past 90 days. AAL delivered a trailing four-quarter earnings surprise of 23.83%, on average.
Copa Holdings, S.A. CPA has an Earnings ESP of +6.71% and sports a Zacks Rank #1. CPA will release results on Feb 7. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CPA’s fourth-quarter 2023 earnings has been revised upward by 5.1% in the past 90 days. CPA delivered a trailing four-quarter earnings surprise of 16.81%, on average.
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation WAB, has an Earnings ESP of +0.85% and a Zacks Rank #2. WAB will release results on Feb 14.
WAB has an expected earnings growth rate of 20.77% for fourth-quarter 2023. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average.
The Zacks Consensus Estimate for WAB’s fourth-quarter 2023 earnings has improved 3.3% over the past 90 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Union Pacific Corporation (UNP) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report
