Union Pacific (UNP) Reports Next Week: Wall Street Expects Earnings Growth

Core Viewpoint - The market anticipates Union Pacific (UNP) to report a year-over-year increase in earnings despite lower revenues for the quarter ending December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Union Pacific is expected to post quarterly earnings of $2.78 per share, reflecting a year-over-year increase of 2.6%, while revenues are projected to be $6.15 billion, a decrease of 0.2% from the previous year [3]. - The consensus EPS estimate has been revised down by 0.81% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Union Pacific is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.18%, complicating predictions of an earnings beat [10][11]. - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, but Union Pacific currently holds a Zacks Rank of 3, making it difficult to predict a beat [8][11]. Historical Performance - In the last reported quarter, Union Pacific was expected to earn $2.76 per share but delivered $2.75, resulting in a surprise of -0.36%. Over the last four quarters, the company has beaten consensus EPS estimates three times [12][13]. Conclusion - Union Pacific does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors when deciding to invest in the stock ahead of its earnings release [16].