Union Pacific UNP releases its next round of earnings this Thursday, July 22. Get the latest predictions in Benzinga's essential guide to the company's Q2 earnings report.
Net Income, Earnings, And Earnings Per Share
Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Based on Union Pacific management projections, analysts predict EPS of $2.5 on revenue of $5.33 billion. In the same quarter last year, Union Pacific posted EPS of $1.67 on sales of $4.24 billion.
Why Analyst Estimates And Earnings Surprises Are Important
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
If the company were to report earnings in line when it publishes results Thursday, quarterly profit would be up 49.7%. Sales would be up 25.59% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 2.06 | 2.29 | 2.05 | 1.52 |
| EPS Actual | 2 | 2.36 | 2.01 | 1.67 |
| Revenue Estimate | 5.03 B | 5.09 B | 4.96 B | 4.37 B |
| Revenue Actual | 5.00 B | 5.14 B | 4.92 B | 4.24 B |
Want Real-Time Earnings Calendar Updates?
Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.
Stock Performance
Over the last 52-week period, shares are up 24.47%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Union Pacific is scheduled to hold the call at 08:45:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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