Union Pacific Corporation
) is set to release first-quarter 2014 results before the opening
bell on April 17, 2014.
Last quarter, the company's reported earnings were ahead of
our estimate. Let's see how things are shaping up for this
Factors to Influence This Quarter
Union Pacific is expected to benefit from growth in chemicals,
intermodal industrial and agricultural segments. Further, the
company's revenues are poised to benefit from the expected growth
in shipment related to automotive, petrochemicals, housing and
grains. Additionally, strong crude-by-rail and the domestic
highway conversion are also likely to bolster the company's
However, Union Pacific expects a slow improvement in economy,
which could mar its 2014 performance, particularly in the
domestic market. Fierce competition along with challenges in the
coal business is anticipated to weigh on the company's coal
shipments in 2014, offsetting the positive impacts of the other
Our proven model does not conclusively show that Union Pacific
is likely to beat the Zacks Consensus Estimate this quarter. This
is because a stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. Unfortunately,
this is not the case here as elaborated below.
: Union Pacific carries a Zacks Rank #3 (Hold).
: The Most Accurate estimate stands at $2.35 while the Zacks
Consensus Estimate is pegged at $2.37, resulting in an Earnings
ESP of -0.84% for Union Pacific. This makes surprise prediction
difficult for us so we caution investors against the stock going
into the earnings announcement.
Other Stocks to Consider
Here are some other companies to consider as our model shows
these have the right combination of elements to post an earnings
beat this quarter:
Ryder Systems Inc.
) with Earnings ESP of +1.15% and Zacks Rank #2 (Buy).
Echo Global Logistics Inc.
) with Earnings ESP of +9.09% and Zacks Rank #3.
) with Earnings ESP of +0.86% and Zacks Rank #3.
ECHO GLOBAL LOG (ECHO): Free Stock Analysis
FEDEX CORP (FDX): Free Stock Analysis Report
RYDER SYS (R): Free Stock Analysis Report
UNION PAC CORP (UNP): Free Stock Analysis
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