Union Pacific's (UNP) bottom line benefits due to its cost-cutting approach. However, weak freight revenues and volumes hurt the company's top line.
Since my last article in January, shares of Union Pacific have retreated modestly as my fair value estimate has climbed higher. Core pricing increases and a more favorable business mix helped to propel the company's operating revenue and diluted EPS higher in Q1. Union Pacific's adjusted debt-to-EBITDA ratio improved to sub-3 levels for the quarter.
Given its better prospects, we believe Philip Morris stock (NYSE: PM) is a better pick than Union Pacific stock (NYSE: UNP). Although these companies are from different sectors, they share similar market capitalizations of around $145-155 billion.
Union Pacific Corporation (NYSE:UNP ) Wolfe's 17th Annual Global Transportation & Industrials Conference May 21, 2024 8:35 AM ET Company Participants Jim Vena - Chief Executive Officer Jennifer Hamann - Chief Financial Officer Kenny Rocker - Executive Vice President of Marketing and Sales Conference Call Participants Scott Group - Wolfe Research Scott Group I'm really happy to have from the UP team Jim Vena, the CEO; Jennifer Hamann, CFO; and Kenny Rocker, EVP of Marketing and Sales. I'm going to pass it off to Jim.