Yahoo Finance Union Pacific Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Investors in Union Pacific Corporation (NYSE:UNP) had a good week, as its shares rose 4.6% to close at US$243 following the release of its first-quarter results. The result was positive overall - although revenues of US$6.0b were in line with what the analysts predicted, Union Pacific surprised by delivering a statutory profit of US$2.69 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Union Pacific
Taking into account the latest results, the most recent consensus for Union Pacific from 23 analysts is for revenues of US$24.8b in 2024. If met, it would imply a satisfactory 2.8% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 7.5% to US$11.25. Before this earnings report, the analysts had been forecasting revenues of US$24.8b and earnings per share (EPS) of US$11.11 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$262. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Union Pacific analyst has a price target of US$290 per share, while the most pessimistic values it at US$210. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Union Pacific'shistorical trends, as the 3.8% annualised revenue growth to the end of 2024 is roughly in line with the 3.4% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 7.9% annually. So although Union Pacific is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Union Pacific's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Union Pacific analysts - going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Union Pacific has 1 warning sign we think you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
