Union Pacific (UNP) Earnings Expected to Grow: Should You Buy?

Company Overview - Union Pacific (UNP) is anticipated to report a year-over-year earnings increase driven by higher revenues for the quarter ended June 2025, with a consensus outlook suggesting a positive earnings picture [1][2] - The earnings report is scheduled for release on July 24, and the actual results will significantly influence the stock price depending on whether they meet or exceed expectations [2] Earnings Estimates - The Zacks Consensus Estimate predicts quarterly earnings of $2.89 per share, reflecting a year-over-year increase of 5.5% [3] - Expected revenues for the quarter are $6.11 billion, which is a 1.7% increase from the same quarter last year [3] Estimate Revisions - Over the past 30 days, the consensus EPS estimate has been revised down by 0.22%, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Union Pacific is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.50%, suggesting a bullish outlook from analysts [12] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10] - Union Pacific currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, Union Pacific was expected to post earnings of $2.73 per share but delivered $2.70, resulting in a surprise of -1.10% [13] - Over the last four quarters, the company has surpassed consensus EPS estimates two times [14] Industry Context - In comparison, CSX (CSX), another player in the Zacks Transportation - Rail industry, is expected to report earnings of $0.42 per share for the same quarter, indicating a year-over-year decline of 14.3% [18] - CSX's revenues are projected to be $3.58 billion, down 3.2% from the previous year, with a negative Earnings ESP of -0.21%, making it challenging to predict an earnings beat [19]