/Union%20Pacific%20Corp_%20logo%20on%20side%20of%20train%20car-by%20Joseph%20Creamer%20via%20Shutterstock.jpg)
Omaha, Nebraska-based Union Pacific Corporation (UNP) operates in the railroad business. Valued at $140.6 billion by market cap, it connects 23 states in the western two-thirds of the U.S. by rail, providing a critical link in the global supply chain, hauling a variety of goods, including agricultural, automotive, and chemical products. The leading class 1 railroad company is expected to announce its fiscal second-quarter earnings for 2025 before the market opens on Thursday, Jul. 24.
Ahead of the event, analysts expect UNP to report a profit of $2.84 per share on a diluted basis, up 3.7% from $2.74 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect UNP to report EPS of $11.53, up 4% from $11.09 in fiscal 2024. Its EPS is expected to rise 10.6% year over year to $12.75 in fiscal 2026.
UNP stock has underperformed the S&P 500 Index’s ($SPX) 11.9% gains over the past 52 weeks, with shares up 4.5% during this period. Similarly, it underperformed the Industrial Select Sector SPDR Fund’s (XLI) 22.8% rise over the same time frame.
UNP's underperformance can be attributed to decreased fuel surcharge revenues, an unfavorable business mix, and lower other revenues. The company's disappointing results were due to declining coal revenues and merchandise volume. Volumes may be affected by economic uncertainty, fluctuations in coal demand, and challenging international intermodal comparisons.
On Apr. 24, UNP shares closed down by 2% after reporting its Q1 results. Its EPS of $2.70 did not meet Wall Street expectations of $2.73. The company’s revenue was $6 billion, missing Wall Street forecasts of $6.1 billion.
Analysts’ consensus opinion on UNP stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 26 analysts covering the stock, 16 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” eight give a “Hold,” and one indicates a “Strong Sell.” UNP’s average analyst price target is $248.44, indicating a potential upside of 5.6% from the current levels.
