Union Pacific to Report Q2 Earnings: Is a Beat in Store for the Stock?

Union Pacific Corporation (UNP) is scheduled to report second-quarter 2025 results on July 24, before market open.The Zacks Consensus Estimate for second-quarter 2025 earnings has been revised 1.76% upward in the past 60 days and is pegged at $2.89 per share. Additionally, the consensus mark implies a 5.47% uptick from the year-ago actual. The Zacks Consensus Estimate for second-quarter 2025 revenues is pegged at $6.11 billion, indicating a 1.7% upside from the year-ago actual.Image Source: Zacks Investment ResearchUnion Pacific’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, the average beat being 1.18%. However, the company’s earnings lagged the Zacks Consensus Estimate in the remaining two quarters (See the Zacks Earnings Calendar to stay ahead of market-making news)Image Source: Zacks Investment ResearchLet’s see how things have shaped up for Union Pacific this earnings season.Factors to Note Ahead of UNP’s Q2 Earnings ReleaseWe expect Union Pacific's performance in the to-be-reported period to have been adversely affected by the woes of the freight market downturn and a soft consumer market. Our estimate for freight revenues is pegged at $5.7 billion, which indicates a decline from first-quarter 2025 actuals. Meanwhile, estimates for other revenues are pegged at $339.8 million, calling for a 1.1% increase from fourth-quarter 2024 actuals.UNP’s efforts to cut costs to combat revenue woes are expected to have aided bottom-line performance in the quarter to be reported. Due to cost cuts and improved operational efficiency, we expect operating expenses to decline in the second quarter of 2025 from the year-ago actuals. Due to reduced costs, we expect the operating ratio (operating expenses as a percentage of revenues) to have improved 20 basis points to 60.2% in the June quarter.UNP is also focused on rewarding its shareholders. Strong free cash flow supports the shareholder-friendly activities of the company. Union Pacific's long-term capital allocation strategy remains unchanged, with a capital plan of $3.4 billion and share repurchases ranging from $4 to $4.5 billion. Such shareholder-friendly moves reflect the company’s financial bliss.What Our Model Says About UNPOur proven model predicts an earnings beat for Union Pacific this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.Union Pacific has an Earnings ESP of +0.50% and a Zacks Rank #3 at present.Union Pacific Corporation Price and EPS Surprise Union Pacific Corporation price-eps-surprise | Union Pacific Corporation QuoteHighlights of UNP’s Q1 EarningsUnion Pacific's first-quarter 2025 earnings of $2.70 per share missed the Zacks Consensus Estimate of $2.73. However, the bottom line improved 0.4% on a year-over-year basis. The year-over-year increase was due to strong operational efficiency and favorable pricing.Operating revenues of $6.03 billion lagged the Zacks Consensus Estimate of $6.09 billion. The top line declined 0.07% on a year-over-year basis due to lower fuel surcharge revenues, an unfavorable business mix and lower other revenues.Stocks to ConsiderHere are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.SkyWest, Inc.SKYW has an Earnings ESP of +3.06% and a Zacks Rank #2 at present. SKYW is scheduled to report second-quarter 2025 earnings on July 24. You can seethe complete list of today’s Zacks #1 Rank stocks here.SkyWest, founded in 1972, is based in St. George and operates regional jets for major U.S. airlines. SKYW is the holding company for SkyWest Airlines, SkyWest Charter and SkyWest Leasing, an aircraft leasing company.SKYW has an impressive earnings surprise track record, having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 17.1%. The Zacks Consensus Estimate for SKYW’s second-quarter 2025 earnings has been revised 1.30% upward in the past 60 days. SKYW’s second-quarter 2025 earnings are expected to grow 28.5% year over year. Knight-Swift Transportation Holdings Inc. (KNX) has an Earnings ESP of +3.22% and a Zacks Rank #3 at present. KNX is scheduled to report second-quarter 2025 earnings on July 23. KNX’s second-quarter 2025 earnings are expected to grow 41.67% year over year. The Zacks Consensus Estimate for KNX’s second-quarter 2025 earnings has been revised downward by 2.86% to 34 cents per share in the past 60 days. KNX’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters (missed the mark in the remaining quarter), the average beat being 3.25%.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Union Pacific Corporation (UNP): Free Stock Analysis Report Knight-Swift Transportation Holdings Inc. (KNX): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks