- Tools for Investors
- Stock News
- Investing Ideas
- Econ & Policy
- Personal Finance
S&P 500 (NYSE:SPY) component Union Pacific (NYSE:UNP) will unveil its latest earnings on Thursday, July 19, 2012. Union Pacific links 23 states in the western two-thirds of the United States through its operating company, Union Pacific Railroad Company.
Union Pacific Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.95 per share, a rise of 22.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $2. Between one and three months ago, the average estimate moved down. It has risen from $1.93 during the last month. For the year, analysts are projecting profit of $8.15 per share, a rise of 21.3% from last year.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 15 cents, reporting net income of $1.79 per share against a mean estimate of profit of $1.64 per share.
Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?
A Look Back: In the first quarter, profit rose 35.1% to $863 million ($1.79 a share) from $639 million ($1.29 a share) the year earlier, exceeding analyst expectations. Revenue rose 13.9% to $5.11 billion from $4.49 billion.
Stock Price Performance: Between April 18, 2012 and July 13, 2012, the stock price rose $8.50 (7.8%), from $109.65 to $118.15. The stock price saw one of its best stretches over the last year between June 11, 2012 and June 19, 2012, when shares rose for seven straight days, increasing 8% (+$8.80) over that span. It saw one of its worst periods between February 3, 2012 and February 10, 2012 when shares fell for six straight days, dropping 3.9% (-$4.48) over that span.
Wall St. Revenue Expectations: Analysts are projecting a rise of 7.6% in revenue from the year-earlier quarter to $5.23 billion.
The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 15.4% over the last four quarters.
This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 16.2% in the third quarter of the last fiscal year and 24.4% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.91 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 1.12 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 17.6% to $3.9 billion while assets decreased 4.3% to $3.56 billion.
Analyst Ratings: With 19 analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.
(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Additional Hot Stories:
Don't miss one of the biggest bull markets in history! Covers Gold, Silver, Gold & Silver stocks, and miners.
There's always a bull market in some sector! Find the best opportunities in commodities.