What's in the Cards for Union Pacific (UNP) in Q4 Earnings?
Union Pacific Corporation UNP is scheduled to report fourth-quarter 2022 results on Jan 24, before market open.
UNP has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 2.81%.
Union Pacific Corporation Price and EPS Surprise
Union Pacific Corporation price-eps-surprise | Union Pacific Corporation Quote
Let’s see how things are shaping up for Union Pacific this earnings season.
Q4 Expectations
The Zacks Consensus Estimate for Union Pacific’s fourth-quarter 2022 revenues is pegged at $6.26 billion, indicating 9.25% growth year over year. The top line is likely to have been aided by an uptick in freight revenues. The Zacks Consensus Estimate for fourth-quarter freight revenues is pegged at $5.95 billion, indicating growth of 12.3% from the year-ago reported figure.
On the flip side, escalating operating expenses, primarily due to rising fuel prices, continue to bother Union Pacific’s bottom line. The Zacks Consensus Estimate for average fuel price per gallon consumed is pegged at $3.93, indicating growth of 55.3% from the year-ago reported figure. Also, the Zacks Consensus Estimate for UNP’s fourth-quarter 2022 earnings has been revised downward by 10.4% in the past 90 days.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Union Pacific this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Union Pacific has an Earnings ESP of -0.36% and a Zacks Rank #3.
Highlights of Q3
Union Pacific’s third-quarter 2022 earnings of $3.19 per share surpassed the Zacks Consensus Estimate of $3.06. Moreover, the bottom line increased 24.1% on a year-over-year basis.
Operating revenues of $6,566 million also beat the Zacks Consensus Estimate of $6,440.6 million. The top line climbed 18% on a year-over-year basis, owing to higher fuel surcharge revenues, volume growth and solid core pricing.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat their fourth-quarter 2022 earnings:
American Airlines AAL has an Earnings ESP of +5.86% and a Zacks Rank #2. AAL will release results on Jan 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Airlines has an expected earnings growth rate of more than 100% for fourth-quarter 2022. AAL delivered a trailing four-quarter earnings surprise of 8.62%, on average.
The Zacks Consensus Estimate for AAL’s fourth-quarter 2022 earnings has been revised upward by more than 100% in the past 90 days.
Copa Holdings, S.A. CPA has an Earnings ESP of +13.89% and a Zacks Rank #3. CPA will release results on Feb 15.
Copa Holdings has an expected earnings growth rate of 89.9% for fourth-quarter 2022. CPA delivered a trailing four-quarter earnings surprise of 48.95%, on average.
The Zacks Consensus Estimate for CPA’s fourth-quarter 2022 earnings has been revised upward by 41.3% in the past 90 days.
Norfolk Southern Corporation NSC has an Earnings ESP of +0.55% and a Zacks Rank #3. NSC will release results on Jan 25.
NSC has an expected earnings growth rate of 9.29% for fourth-quarter 2022. `NSC delivered a trailing four-quarter earnings surprise of 4.06%, on average.
NSC has a long-term expected growth rate of 8.96%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Union Pacific Corporation (UNP) : Free Stock Analysis Report
Norfolk Southern Corporation (NSC) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
