• NYSE:UNP Union Pacific Stock and Profitability Discussion

  • Discussion about the Union Pacific operations past and present. Official site can be found here: UPRR.COM.
Discussion about the Union Pacific operations past and present. Official site can be found here: UPRR.COM.

Moderator: GOLDEN-ARM

  by John_Perkowski
I bought Union Pacific in the 90s. As I recall, it was during the challenges of SP absorption.

It has been one of my absolute best long term investments.

I also own Southwest, and have suffered through its low price years. It has also been a great investment.
  by Jeff Smith
DISCLOSURE AND ADMIN NOTE: This thread is for the discussion of UNION PACIFIC Stock, profitability, etc. RAILROAD.NET makes no representation or warranties as to the prospects of this stock or company; all risk is aed by investors only. Publication of insider information is punishable under law. The views expressed herein are those of the member only.
  by Jeff Smith
Union Pacific delivers 4% better 2Q profit on lower expenses

OMAHA — Union Pacific Corp. delivered 4% more profit in the second quarter even though it hauled less freight because it cut its expenses by 7%.

The Omaha, Nebraska-based railroad said Thursday it earned $1.57 billion, or $2.22 per share, in the quarter. That’s up from $1.51 billion, or $1.98 per share, a year ago.

The results, aided by Union Pacific’s operational changes, beat the $2.12 per share that analysts surveyed by Zacks Investment Research expected.

The railroad said revenue declined 1% to $5.6 billion in the period, which still beat Wall Street forecasts of $5.58 billion.
  by Gilbert B Norman
I've held Long position UNP since 2010 with a Cost Basis of $40.63 p/s. Look it up to see its price today.

In my portfolio, only stocks within the Defense, Media, and Tech sectors have outperformed UNP YTD.

Just think, an Advisor said "sell it"; wonder why me and that Advisor have parted ways (plus "a few other reasons").
  by 57A26
Maybe they think the house of cards is close to collapse? They may be running out of places to cut. They are losing volume, but for now have some pricing power to maintain revenue. That can't last. A co-worker said he saw where some analyst, maybe the one you cited, said UP has the highest debt load they've had in modern times. (The co-worker said the debt equaled or surpassed the actual value of the company. I haven't been able to find that, so I think he may have taken something incorrectly. Although they did borrow a lot of money to buy back stock.)

There's a rumor going around, not just on UP, that UPS is going to pull most of their business off the rails. The latest Teamster-UPS contract has that provision. The reason being rail service is getting worse. UPS is a major contract for UP, and everyone else. If it's true, the railroads are in trouble. They need to tell those short term investors to take a hike. Once those type have wrung out all the money they can and leave, it's the long term investor who'll be left holding the bag has the railroad has to spend money to repair or replace what was cut to funnel money to those short term people.