Union Pacific’s Q3 Profit Beats Estimates on Higher Margins, but Revenue Misses on Lower Coal Volumes (UNP)


Shutterstock photo

Railroad operator Union Pacific Corporation ( UNP ) on Thursday posted mixed third quarter earnings results, as margins widened but shipments of coal continued to decline.

The Omaha-based company reported third quarter net income of $1.04 billion, or $2.19 per share, compared with $904 million, or $1.85 per share, in the year-ago period.

Revenue rose 4% from last year to $5.34 billion.

On average, Wall Street analysts expected a slightly smaller profit of $2.18 per share, albeit on higher revenue of $5.39 billion.

CEO Jack Koraleski commented, "Despite a 12% decline in coal volumes and significantly weaker steel and scrap-metal markets, we generated best-ever financial results across the board. We achieved solid core pricing gains, managed our network efficiently and delivered on the benefits of our diverse franchise with growth in other markets."

Union Pacific shares rose $2.09, or +1.7%, in morning trading Thursday.

The Bottom Line
Shares of Union Pacific ( UNP ) have a 1.94% dividend yield, based on last night's closing stock price of $123.73. The stock has technical support in the $115-$118 price area. If the stock can firm up, we see overhead resistance around the all-time highs of $129 a share.

Union Pacific Corporation ( UNP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by Dividend.com

This article appears in: Investing , Stocks

More from Dividend.com



Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com