Union Pacific beats estimates with adjusted EPS of $3.53 for the quarter

what happened

Union Pacific Corporation reported adjusted earnings of $3.53 per share, above the $3.47 mean forecast of 25 analysts. A year earlier the company had posted $3.03 per share. Earnings Summary reported that revenue rose 11.5% to $7.20 billion, against analyst expectations of $6.71 billion.

The reported EPS was $3.36, and quarterly net income came to $1.99 billion. A second report from the same publisher assigns the $3.53 figure to the quarter ended September 30, with revenue of $6.86 billion and net income of $2.08 billion. The period and several figures differ between the two versions, so they should be checked against the primary source.

why it matters

Analyst earnings estimates for the company rose by about 1.8% over three months in the first report and by about 7.1% in the second. The average rating remains buy, with a median 12-month price target of $333.00 against a last close of $287.87. For the rail and freight sector, the key point is that headline results came in above consensus, and the shares are up 24.4% year to date.

market impact

UNP and US freight transport: a stronger-than-expected report supports sentiment toward the sector.

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