NEW YORK (TheStreet) -- "Wow! This is a recession" in the railroad industry, TheStreet's Jim Cramer said on CNBC's Squawk on the Street this morning after reviewing the latest quarterly earnings from Union Pacific Corp. (UNP - Get Report) , adding that the overall "economy is soft."
Shares of Union Pacific, an Omaha, NE-based railroad operator, are retreating 6.81% to $68.61 in mid-morning trading on Thursday after the company reported lower than expected 2015 fourth quarter financial results.
Cramer pointed out that Union Pacific CEO Lance Fritz was straight forward with the impacts the economy has had on the railroad business.
"Overall economic conditions, uncertainty in the energy markets, commodity prices, and the strength of the U.S. dollar will continue to have a major impact on our business this year," Fritz commented in a statement.
Cramer explained that Union Pacific's performance is a real consequence of a softer economy.
"This is the best railroad company," Cramer remarked as he noted that the company's automotive freight revenues were up only 1%, while chemical and agricultural products revenues were down 7% and 12%, respectively.
Union Pacific carload figures are not something that can be given a positive spin, Cramer observed, adding that he will not say that everything is doing great when the data shows otherwise.
Separately, Union Pacific has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's notable return on equity, expanding profit margins, largely solid financial position and reasonable valuation levels.
You can view the full analysis from the report here: UNP
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.UNP data by YCharts