The 10-second takeaway
For the quarter ended March 31 (Q1), Union Pacific beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share increased.
Margins grew across the board.
Union Pacific chalked up revenue of $5.29 billion. The 19 analysts polled by S&P Capital IQ hoped for a top line of $5.22 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $2.03. The 28 earnings estimates compiled by S&P Capital IQ forecast $1.96 per share. GAAP EPS of $2.03 for Q1 were 13% higher than the prior-year quarter's $1.79 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 43.6%, 150 basis points better than the prior-year quarter. Operating margin was 30.9%, 140 basis points better than the prior-year quarter. Net margin was 18.1%, 120 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $5.50 billion. On the bottom line, the average EPS estimate is $2.34.
Next year's average estimate for revenue is $22.24 billion. The average EPS estimate is $9.49.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,322 members out of 1,373 rating the stock outperform, and 51 members rating it underperform. Among 357 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 347 give Union Pacific a green thumbs-up, and 10 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 $147.35.
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