Burlington Northern (BNI) Sinks 5% As Analyst Sees Risks To Profits

Shares of Burlington Northern Santa Fe Corp. (NYSE: BNI) are nearly 5% lower today after UBS placed a "short-term Sell' rating on the rail company, citing risks of a profit warning due to rising fuel prices.

Burlington Northern is expected to report second quarter results at the end of July. UBS expects the company to earn $1.35 per share, which is below the average analyst EPS estimate of $1.43.

The news is also dragging down other railroad stocks: Union Pacific Corp. (NYSE: UNP) is down 3%, Norfolk Southern (NYSE: NSC) is down 3.2%, CSX Corp. (NYSE: CSX) is down 1.3%, Canadian Pacific (NYSE: CP) is down 1.8%.

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