Stock Monitor: L.B. Foster Post Earnings Reporting
LONDON, UK / ACCESSWIRE / November 27, 2017 / Active-Investors' free earnings report on Union Pacific Corp. (NYSE: UNP) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/'symbol=UNP. Union Pacific reported its third quarter fiscal 2017 operating results on October 26, 2017. The No. 1 US railroad surpassed top- and bottom-line expectations. Register today and get free access to our complimentary member's area where many more reports are available: www.active-investors.com/registration-sg.
Active-Investors.com is currently working on the research report for L.B. Foster Company (NASDAQ: FSTR), which also belongs to the Services sector as the Company Union Pacific. Do not miss out and become a member today for free to access this upcoming report at: www.active-investors.com/registration-sg/'symbol=FSTR.
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 we have decided to include it on our blog post. Today's free coverage is available at: www.active-investors.com/registration-sg/'symbol=UNP.
Earnings Highlights and Summary
Union Pacific reported operating revenue of $5.41 billion, up 5% compared to revenue of $5.17 billion in Q3 2016. The Company's revenue topped analysts' expectations of $5.31 billion.
Union Pacific's Q3 2017 business volumes, as measured by total revenue carloads, declined 1% on a y-o-y basis. The Company's Volume growth in industrial products were more than offset by declines in agricultural products, automotive, chemicals, and coal. Union Pacific's Intermodal volume were flat on a y-o-y basis in the reported quarter. The Company's Carload volume decreased in 4 of its 6 commodity groups, driven primarily by a 10% decrease in Agricultural Products and associated grain carloadings.
Union Pacific's Q3 2017 operating expense totaled $3.4 billion, up 6% on a y-o-y basis. The operating expenses included the impact from Hurricane Harvey and the onetime expense associated with the Company's workforce reduction plan. Union Pacific's operating income for the reported quarter totaled $2 billion, representing 3% growth on a y-o-y basis.
Union Pacific reported Q3 2017 net income of $1.2 billion, or a $1.50 per diluted share, compared to net income of $1.1 billion, or $1.36 per diluted share, in Q3 2016. The Company's earnings topped Wall Street's estimates of $1.49 per share.
Operating Results
During Q3 2017, Union Pacific's Freight revenue of $5 billion grew 4% on a y-o-y basis, despite a 1% decrease in volume, as increased fuel surcharge revenue, core pricing gains, and positive mix of traffic all contributed to the increase. The Company's Fuel surcharge revenue totaled $227 million, up $54 million when compared to the year ago same period.
Union Pacific's operating ratio was 62.8%, increasing 0.7 points in Q3 2017 compared to Q3 2016. Higher fuel prices negatively impacted the operating ratio by 0.3 points. The Company's $1.77 per gallon average quarterly diesel fuel price in the reported quarter was 13% higher on a y-o-y basis. The Company's quarterly train speed, as reported to the Association of American Railroads, was 25.4 mph, 2% compared to the year ago corresponding period. Union Pacific's year-to-date reportable personal injury rate of 0.78 per 200,000 employee-hours increased from the record year-to-date rate of 0.77 achieved in 2016.
Cash Position
Union Pacific's cash from operations for the first 3 quarters of the year totaled approximately $5.4 billion, down 1% on a y-o-y basis. The decrease in cash was primarily related to a lower bonus depreciation benefit in 2017 compared to 2016, which was mostly offset by the increase in net income.
Union Pacific's all-in adjusted debt balance totaled about $19.4 billion at the end of Q3 2017, up $1.6 billion since the start of the year. The Company finished the reported quarter with an adjusted debt-to-EBITDA ratio of around 1.9x, which is close to Union Pacific's target ratio of just under 2x.
Union Pacific repurchased 11.8 million shares in Q3 2017 at an aggregate cost of nearly $1.3 billion.
Outlook
For Q4 2017, Union Pacific is forecasting carloadings to increase slightly on a y-o-y basis and the Company expects full year carloading growth to be up in the low single-digit range. Union Pacific noted that with positive full year volume, positive core price and significant productivity benefits, it is still on track to improve its full year operating ratio.
Stock Performance Snapshot
November 24, 2017 - At Friday's closing bell, Union Pacific's stock marginally rose 0.33%, ending the trading session at $118.25.
Volume traded for the day: 1.30 million shares.
Stock performance in the last month - up 7.24%; previous three-month period - up 12.35%; past twelve-month period - up 16.63%; and year-to-date - up 14.05%
After last Friday's close, Union Pacific's market cap was at $92.78 billion.
Price to Earnings (P/E) ratio was at 20.93.
The stock has a dividend yield of 2.25%.
The stock is part of the Services sector, categorized under the Railroads industry. This sector was up 0.2% at the end of the session.
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