Omaha, Nebraska-based Union Pacific Corporation (UNP) is a prominent transportation company and one of North America's largest freight railroads. With a market cap of $140.3 billion, Union Pacific provides efficient rail-based transportation solutions across various industries, serving businesses and supply chains throughout the U.S. and beyond. The company is scheduled to release its Q4 earnings before the market opens on Thursday, Jan. 23.
Ahead of the event, analysts expect UNP to report a profit of $2.76 per share, up 1.9% from $2.71 in the year-ago quarter. The company has beaten Wall Street's earnings estimates in three of the last four quarters, while missing on another occasion.
For fiscal 2024, analysts expect UNP to report EPS of $10.94, up 4.7% from $10.45 in fiscal 2023. Further, for fiscal 2025, its EPS is likely to rise 10.2% year over year to $12.05.
Over the past year, UNP has plunged 4.2%, trailing the broader S&P 500 Index's ($SPX) 26.3% gains, and the iShares Transportation Average ETF’s (IYT) 7.8% returns over the same time frame.
Union Pacific’s stock dropped nearly 4.4% following its Q3 earnings release on Oct. 24, despite reporting revenue and earnings growth. The company posted a 2.5% year-over-year increase in operating revenues, reaching $6.1 billion, but missed analysts’ expectations due to a less favorable business mix and lower fuel surcharge revenue. Additionally, the company reported revenue of $6.1 billion, marking a 2.5% year-over-year increase and meeting analyst expectations. However, EPS came in at $2.75, missing the consensus estimate by 1.1%.
The consensus opinion on UNP stock is moderately optimistic, with an overall “Moderate Buy” rating. Of the 25 analysts covering the stock, 14 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and 10 suggest a “Hold.”
UNP's average analyst price target is $260.68, indicating a potential upside of 12.6% from the current levels.
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