The railroad operator reported $1.30 earnings per share for the quarter, missing the analysts’ consensus estimate of $1.37 by $0.07. Earnings, however, declined 3% on a year-over-year basis.
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Railroad giant Union Pacific reported a “significant” demand decrease in its second quarter earnings report Thursday.
Shares of Union Pacific Corporation (NYSE:UNP) ended Wednesday session in red amid volatile trading. The company has a market cap of $86.46 billion and a P/E ratio of 16.83.
Coal freight revenue fell to $679 million from $989 million. Coal prices have slumped due to high exports from Australian coal suppliers and low demand from China. The Company is a Class I railroad operating in the United States, which has 31,974 route miles and maintains coordinated schedules with other rail carriers to move freight.
Wall Street sell-side analysts have placed a $116.187 one year price target on Union Pacific Corporation (NYSE:UNP). On a different note, The Company has disclosed insider buying and selling activities to the Securities Exchange, The Officer (EVP OPS) of Union Pacific Corp, Scott Cameron A sold 2,770 shares at $104.44 on May 22, 2015.
The Kraft Heinz Company (KHC) of the Consumer Goods sector is up 0.21% so far today trading at $80.39 at a volume of 231850 shares.
Presently, the price of U.S. on-highway diesel fuel has been fluctuating around its lows, as crude oil prices have showed some upwards momentum. Stockholders of record on Friday, May 29th were paid a dividend of $0.55 per share. However, it climbed to $2.91 by the fourth week of May. The stock now has an average rating of “Buy” and an average price target of $122.50.
A sharp decline in coal shipments drove down Union Pacific’s second-quarter profit by 7 percent, and executives predicted that the railroad would fall short of expectations for the year because the challenging conditions will continue.
There were only a couple areas where quarterly shipping volume increased for Union Pacific. A turnaround was expected in the second quarter, since negotiations between the global Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) ended. This has led to sluggish growth in Union Pacific’s intermodal carloads.
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Check back later for our full write up on this Union Pacific earnings report later!
