Barclays on North America Airfreight & Ground Transportation: Union Pacific (UNP) Kicked Off
UNP Hot Sheet
Rating Summary:12 Buy, 2 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 82
Barclays on North America Airfreight & Ground Transportation
Barclays analyst, Gary Chase, said, "Union Pacific (NYSE: UNP) kicked off railroad earnings season with a quarter that was largely inline with expectations. The focus quickly shifted, however, to management's discussion of cost headwinds for 2011, which were a bit steeper than we anticipated. Having surprised to the upside last year with a material reduction to the 'Other' expense line, this year appears likely to surprise on the downside. While the cost headwinds are driving a reduction to our outlook, we want to keep the changes in context. Despite the cost pressures, UNP appears on track for solid double digit earnings growth in 2011 and valuation remains attractive. We expect inline reports from the remaining carriers next week, but also believe others will echo commentary on improved demand fundamentals and efficiencies providing a favorable outlook for 2011 earnings."
Other railroad stocks of interest include: CSX Corp (NYSE: CSX), Norfolk Southern (NYSE: NSC), Canadian National (NYSE: CNI), Kansas City Southern (NYSE: KSU), Burlington Northern (NYSE: BNI), and Canadian Pacific Railway (NYSE: CP)
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Barclays analyst, Gary Chase, said, "Union Pacific (NYSE: UNP) kicked off railroad earnings season with a quarter that was largely inline with expectations. The focus quickly shifted, however, to management's discussion of cost headwinds for 2011, which were a bit steeper than we anticipated. Having surprised to the upside last year with a material reduction to the 'Other' expense line, this year appears likely to surprise on the downside. While the cost headwinds are driving a reduction to our outlook, we want to keep the changes in context. Despite the cost pressures, UNP appears on track for solid double digit earnings growth in 2011 and valuation remains attractive. We expect inline reports from the remaining carriers next week, but also believe others will echo commentary on improved demand fundamentals and efficiencies providing a favorable outlook for 2011 earnings."
Other railroad stocks of interest include: CSX Corp (NYSE: CSX), Norfolk Southern (NYSE: NSC), Canadian National (NYSE: CNI), Kansas City Southern (NYSE: KSU), Burlington Northern (NYSE: BNI), and Canadian Pacific Railway (NYSE: CP)
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Recent Price decline of most railroad
Even before UNP reported their earings the rails started to get hits downward. After the report most :csx,ksu and,nsc all took a two days of down hits. Even though all three railroads have basic differences, to compare with UNP. iT SHOULD BE INTERESTING how the others react to the earnings reports next week.
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Recent Price decline of most railroad
John Nolan on Jan 22, 2011 07:46 AMMark as Spam
Even before UNP reported their earings the rails started to get hits downward. After the report most :csx,ksu and,nsc all took a two days of down hits. Even though all three railroads have basic differences, to compare with UNP. iT SHOULD BE INTERESTING how the others react to the earnings reports next week.