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Union Pacific Beats on Both Top and Bottom Lines

By Seth Jayson – Updated Apr 10, 2017 at 1:47PM

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Just the facts, Fool.

Union Pacific (NYSE: UNP) reported earnings on April 18. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.)

Looking ahead
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.

Investor sentiment
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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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