Here’s Why Union Pacific (UNP) Stock Is Down Today
NEW YORK (TheStreet) -- Shares of Union Pacific (UNP) - Get Report are slumping 3.18% to $91.20 early Thursday afternoon after the company posted in-line earnings per share and slightly lower-than-expected revenue for the 2016 second quarter.
Before today's opening bell, the Omaha, NE-based railroad company reported earnings of $1.17 per diluted share, which matched analysts' expectations. Last year, the company earned $1.38 per share.
Revenue was $4.77 billion, slightly below analysts' forecasts of $4.79 billion.
Second quarter earnings fell as freight demand remains under pressure.
"A soft global economy, the negative impact of the strong U.S. dollar on exports, and relatively weak demand for consumer goods will continue to pressure volumes through the second half of the year," CEO Lance Fritz said in a statement.
Total freight volume declined 11% during the period. Coal volume plunged 21% and industrial products volume fell 11%, the company said.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and notable return on equity.
The team believes its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: UNP