Why The Union Pacific Stock Fell 3.3% (UNP)

By Amit Chowdhry ● Jan 25, 2023
  • The stock price of Union Pacific (UNP) fell by 3.3% in the most recent trading session. This is why.

The stock price of Union Pacific (UNP) fell by 3.3% in the most recent trading session.

Why: Union Pacific reported a Q4 EPS of $2.67, which was $0.11 lower than analyst estimates of $2.78. And the revenue for the quarter was $6.2 billion compared to the consensus estimate of $6.31 billion.

2023 Guidance

  1. Full-year carloads to exceed Industrial Production
    1. Current Industrial Production forecast: about 0.5%
  2. Full-year operating ratio improvement
  3. Pricing dollars in excess of inflation dollars
  4. Capital Allocation:
    1. Capital spending less than 15% of revenue
      1. Capital plan of $3.6 billion
    2. Long-term dividend payout target of about 45% of earnings
    3. Excess cash to share repurchases