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.
If you're interested in transportation companies like Union Pacific, then you should check out our special report that features 3 companies who depend on, and invest in, that industry. Learn the basic financial habits of millionaires next door and get these 3 focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Union Pacific to My Watchlist.
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. Try any of our Foolish newsletter services free for 30 days. 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.