Report
Keith Schoonmaker, CFA
EUR 98.48 For Business Accounts Only

Coal Boosts UP's Top Line, Solid Execution Maintains a Good OR Amid Fuel and Weather Headwinds

Union Pacific grew first-quarter volume and revenue per unit by 2% and 4%, respectively, resulting in a 6% top-line increase. While we maintain our long-run perspective (and wide moat rating), this is the third quarter in which UP reported low core pricing gains--this quarter just 1%. This deserves continued scrutiny going forward. We attribute the modest core pricing power to competitive pressure from BNSF and from trucking, where overcapacity continues to suppress prices. We’re increasing our ...
Underlying
Union Pacific Corporation

Union Pacific, through its operating subsidiary, Union Pacific Railroad Company, is a Class I railroad operating in the United States. The company's network included route miles, linking Pacific Coast and Gulf Coast ports with the Midwest and eastern United States. gateways and providing several corridors to key Mexican gateways. The company serves the western two-thirds of the country and maintains coordinated schedules with other rail carriers for the handling of freight to and from the Atlantic Coast, the Pacific Coast, the Southeast, the Southwest, Canada, and Mexico. The company's business mix includes agricultural products, energy, industrial, and premium.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Keith Schoonmaker, CFA

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