LONDON, UK / ACCESSWIRE / January 31, 2018 / Active-Investors.com has just released a free earnings report on Union Pacific Corp. (NYSE: UNP). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=UNP. The Company reported its fourth quarter fiscal 2017 and full fiscal year 2017 operating and financial results on January 25, 2018. The railroad operator exceeded revenue expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Union Pacific most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
Union Pacific’s operating revenue grew 5% to $5.45 billion for Q4 2017 compared to $5.17 billion in Q4 2016. The Company’s revenue numbers topped analysts’ estimates of $5.42 billion.
For Q4 2017, Union Pacific’s adjusted operating ratio of 62.6% increased 0.6% compared to Q4 2016.
During Q4 2017, Union Pacific’s business volumes, as measured by total revenue carloads, increased 1% to 2.17 million on a y-o-y basis, driven primarily by growth in industrial products and chemicals, partially offset by declines in agricultural products, automotive, and coal. Intermodal carloads were unchanged for the reported quarter.
For the full year FY17, Union Pacific’s operating revenue gained 6.5% to $21.24 billion compared to $19.94 billion in FY16.
Union Pacific reported a net income of $7.28 billion, or $9.25 per diluted share, in Q4 2017 compared to $1.14 billion, or $1.39 per diluted share, in Q4 2016. The Company’s reported quarter results included adjustments reflecting the impact of the newly enacted corporate tax reform. Excluding those items, Union Pacific’s adjusted net income was $1.2 billion, or $1.53 per diluted share, in the reported quarter, reflecting a growth of 5% and 10%, respectively, compared to the year ago same period. The Company’s earnings lagged Wall Street’s estimates of $1.54 per share.
For FY17, Union Pacific reported a net income of $10.7 billion, or $13.36 per diluted share, compared to $4.2 billion, or $5.07 per diluted share, in FY16. Excluding the adjustments reflecting the impact of the corporate tax reform, the Company’s adjusted net income was $4.6 billion, or $5.79 per diluted share, up 10% and 14% on a y-o-y basis, respectively.
Operating Results
During Q4 2017, Union Pacific’s freight revenue grew 5% to $5.09 billion on a y-o-y basis. Increased fuel surcharge revenue, core pricing gains, positive volume, and positive mix of traffic all contributed to the growth in freight revenue.
For Q4 2017, Union Pacific’s fuel expenses totaled $547 million, up 27% on a y-o-y basis. Higher diesel fuel prices and a 3% increase in gross ton miles drove the increase in fuel expenses for the reported quarter. In Q4 2017, the $2.03 per gallon average quarterly diesel fuel price was 23% higher on a y-o-y basis.
For Q4 2017, Union Pacific’s quarterly train speed, as reported to the Association of American Railroads, was 25.1 mph, 5% slower compared to Q4 2016.
Segment Results
During Q4 2017, Union Pacific’s Agricultural Products segment’s revenue fell 4% to $922 million, on a 7% decline in volume, partially offset by a 3% increase in average revenue per car. For Q4 2017, Union Pacific’s Automotive segment’s revenue dropped 1% to $512 million on a y-o-y basis, attributed to a 4% drop in volume, and partially offset by a 3% increase in average revenue per car.
Union Pacific’s Chemicals segment’s revenue grew 7% to $917 million on a y-o-y basis in Q4 2017, driven by a 5% increase in volume and a 2% growth in average revenue per car. During Q4 2017, Union Pacific’s Coal segment’s revenue fell 5% to $667 million on a y-o-y basis, due to a 3% drop in volume and a 2% decrease in average revenue per car.
For Q4 2017, Union Pacific’s Industrial Products segment’s revenue surged 28% to $1.06 billion on a y-o-y basis, driven by a 17% increase in volume and a 10% increase in average revenue per car during the reported quarter. The segment’s Minerals volume soared 71% in Q4 2017, driven by an increase of over 100% in sand shipments due to improving well completions and increased profit intensity per well.
In Q4 2017, Union Pacific’s Intermodal segment’s revenue grew 4% to $1.01 billion on a flat volume, due to a 4% increase in average revenue per car. The domestic market increased 1%, driven by strong parcel shipments. International volume was down 2%, driven by continued headwinds from industry challenges, due to overcapacity and consolidations.
Cash Matters
Union Pacific’s cash from operations totaled approximately $7.2 billion for FY17, down 4% compared to the year ago same period. The Company’s adjusted return on invested capital was 13.7% in FY17, up a full point from FY16, driven primarily by higher earnings.
Union Pacific’s all-in adjusted debt balance totaled about $19.5 billion at the end of 2017, up $1.6 billion since the end of 2016. The Company finished the reported quarter with an adjusted debt to EBITDA ratio of about 1.9x.
Union Pacific repurchased 36.4 million shares, totaling $4 billion during the full year FY17. During Q4 2017, the Company bought back 9.2 million shares at a cost of about $1.1 billion. Since initiating share repurchases in 2007, Union Pacific has repurchased over 32% of its outstanding shares. The Company returned $6 billion to its shareholders in 2017, which represented 129% of adjusted net income over the same period.
Stock Performance Snapshot
January 30, 2018 – At Tuesday’s closing bell, Union Pacific’s stock marginally declined 0.51%, ending the trading session at $135.36.
Volume traded for the day: 5.36 million shares, which was above the 3-month average volume of 4.44 million shares.
Stock performance in the last month – up 0.18%; previous three-month period – up 15.61%; past twelve-month period – up 25.33%; and year-to-date – up 0.94%
After yesterday’s close, Union Pacific’s market cap was at $106.05 billion.
Price to Earnings (P/E) ratio was at 10.02.
The stock has a dividend yield of 1.97%.
The stock is part of the Services sector, categorized under the Railroads industry.
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