Union Pacific (UNP) Tops Q4 Earnings Estimates

Core Viewpoint - Union Pacific reported quarterly earnings of $2.91 per share, exceeding the Zacks Consensus Estimate of $2.78 per share, and showing an increase from $2.71 per share a year ago, indicating a positive earnings surprise of 4.68% [1] Financial Performance - The company posted revenues of $6.12 billion for the quarter ended December 2024, which was 0.43% below the Zacks Consensus Estimate and a decrease from $6.16 billion year-over-year [2] - Over the last four quarters, Union Pacific has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] Stock Performance and Outlook - Union Pacific shares have increased approximately 3.4% since the beginning of the year, compared to a 3.5% gain in the S&P 500 [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $2.77 for the coming quarter and $12.03 for the current fiscal year [7] Industry Context - The Transportation - Rail industry, to which Union Pacific belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Union Pacific's stock performance [5]