The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Union Pacific met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Margins grew across the board.
Union Pacific booked revenue of $5.34 billion. The 20 analysts polled by S&P Capital IQ predicted sales of $5.37 billion on the same basis. GAAP reported sales were 4.7% higher than the prior-year quarter's $5.10 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $2.19. The 26 earnings estimates compiled by S&P Capital IQ averaged $2.20 per share. GAAP EPS of $2.19 for Q3 were 18% higher than the prior-year quarter's $1.85 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 45.5%, 250 basis points better than the prior-year quarter. Operating margin was 33.4%, 250 basis points better than the prior-year quarter. Net margin was 19.5%, 180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $5.37 billion. On the bottom line, the average EPS estimate is $2.20.
Next year's average estimate for revenue is $21.06 billion. The average EPS estimate is $8.28.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,286 members out of 1,333 rating the stock outperform, and 47 members rating it underperform. Among 323 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 315 give Union Pacific a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Union Pacific is outperform, with an average price target of $136.25.
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