Union Pacific's (UNP) Q2 performance is expected to be adversely impacted by the freight market downturn.
The complicated and capital-intensive nature of operating a railway network creates high barriers to entry. Union Pacific is managing costs, but a slowdown in freight volume is weighing on the business.
Union Pacific stock (NYSE: UNP) currently trades at $222 per share, around 20% below its level of $277 in March 2022. In comparison, its peer – CSX stock (NYSE: CSX) saw its stock fall by 8% over the same period.
Union Pacific (UNP) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Union Pacific Corporation (NYSE:UNP ) NYSE/Bank of America London Investor Conference June 25, 2024 9:00 AM ET Company Participants Jim Vena - Chief Executive Officer Jennifer Hamaan - Chief Financial Officer Conference Call Participants Ken Hoexter - BofA Ken Hoexter To the next session in the New York Stock Exchange and BofA Conference here in London. Thank you for taking the time to join us.
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.