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Discover Financial Services (DFS) Q4 Earnings: What Can You Expect?

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Discover Financial Services (NYSE:DFS) is scheduled to report Q4 earnings results on January 23, 2020, after markets close for trading.

The company is expected to report earnings of $2.25/share on revenue of $2.943 billion. The consensus earnings per share (EPS) of $2.25/share is based on a poll of 19 analysts and represents a growth of 10.8% over the same quarter last year when the company reported earnings of $2.03/share.

The revenue forecast of $2.943 billion based on a poll of 11 analysts implies a year-over-year (YoY) growth of 4.8%. Last year the company reported $2.807 billion in revenue for the quarter.

Expected to report EPS growth of $0.22/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $2,943.00 $2,807.00 4.8%
EPS $2.25 $2.03 10.8%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, missed 1 quarter, and met expectations 1 quarter.

What are your expectations from Discover Financial Services for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $2.28 $2.36 3.4% Beat
Q2, 2019 $2.10 $2.32 10.5% Beat
Q1, 2019 $2.03 $2.15 5.9% Beat
Q4, 2018 $2.06 $2.03 -1.5% Missed
Q3, 2018 $2.05 $2.05 0.0% Meet
Q2, 2018 $1.88 $1.91 1.6% Beat
Q1, 2018 $1.79 $1.82 1.7% Beat
Q4, 2017 $1.54 $1.55 0.6% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.

After the last earnings report for the period ending September 30, 2019, the stock price did not react much to the update.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-22 $80.44 $80.52 0.1% Increase
2019-07-23 $82.33 $92 11.7% Increase
2019-04-25 $77.02 $81.19 5.4% Increase
2019-01-24 $66.16 $66.73 0.9% Increase

Fundamentals And Technical Analysis

Discover Financial Services is currently trading at $83.68/share, down -0.9% for the day. The company is trading at approximately 90.0% of its 52-week high of $92.98/share. The company’s stock price is up 3.9% since the last earnings report and up 0.8% over the previous week.

NYSE:DFS Stock Price Chart Source: Finbox

The company’s 14 Day Relative Price Index (RSI) of 54.01 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of 9.0x and a forward P/E multiple of 9.1x. Discover’s current share price also implies a price-to-book (P/B) multiple of 2.4x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $83.68
P/E Ratio 9.0x
P/E Ratio (Fwd) 9.1x
PEG Ratio -8.7
Total Debt to Capital (%) 47.5%
Levered Free Cash Flow $5.204 billion
Market Capitalization $26.469

Source: Finbox

Company Profile: Discover Financial Services

Discover Financial Services is a large-cap stock with a market capitalization of $26.469 billion. The company operates in the Financial sector and the Consumer Finance industry.

Discover operates as a direct banking and payment services company in the United States. The Direct Banking segment offers Discover-branded credit cards to individuals; and other consumer products and services, including private student loans, personal loans, home equity loans, and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, savings accounts, checking accounts, and individual retirement arrangement certificates of deposit.

The Payment Services segment operates the PULSE network, an automated teller machine, debit, and electronic funds transfer network; Diners Club International, a payments network that issues Diners Club branded charge cards and provides card acceptance services; and Discover Network that processes transactions for Discover-branded credit and debit cards, as well as provides payment transaction processing and settlement services.

The company was incorporated in 1986 and is based in Riverwoods, Illinois.

Southwest Airlines Q4 Earnings: Can LUV Hit Its $1.11 EPS Target?

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Southwest Airlines Co. (NYSE:LUV) is scheduled to report Q4 earnings results on January 23, 2020, before markets open for trading. The company is expected to report earnings of $1.11/share on revenue of $5.715 billion. The consensus earnings per share (EPS) of $1.11/share is based on a poll of 18 analysts and represents a decline of -5.4% over the same quarter last year when the company reported earnings of $1.17/share.

The revenue forecast of $5.715 billion based on a poll of 13 analysts implies a year-over-year (YoY) growth of 0.2%. Last year the company reported $5.704 billion in revenue for the quarter.

Expected to report EPS decline of -$0.06/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $5,715.00 $5,704.00 0.2%
EPS $1.11 $1.17 -5.4%

Southwest has managed to become the strongest brand in the industry by offering simple fare prices, free checked bags, and excellent customer service even as ultra-low-cost airlines like Spirit continue to put downward pressure on flight prices. While Southwest has managed to steadily grow revenue, the airline’s gross profit margins have suffered since 2015.

NYSE:LUV Fundamentals Chart
Source: Finbox

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters and met expectations 1 quarter.

What are your expectations from Southwest Airlines for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $1.08 $1.23 13.9% Beat
Q2, 2019 $1.35 $1.37 1.5% Beat
Q1, 2019 $0.61 $0.70 14.8% Beat
Q4, 2018 $1.07 $1.17 9.0% Beat
Q3, 2018 $1.08 $1.08 0.0% Meet
Q2, 2018 $1.23 $1.26 2.4% Beat
Q1, 2018 $0.73 $0.75 2.2% Beat
Q4, 2017 $0.76 $0.77 1.4% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.

After the last earnings report for the period ending September 30, 2019, the stock price reacted by increasing by 6.6%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-24 $53.24 $56.74 6.6% Increase
2019-07-25 $54.72 $53.25 -2.7% Decline
2019-04-25 $52.93 $52.98 0.1% Increase
2019-01-24 $51.02 $54.98 7.8% Increase

Fundamentals And Technical Analysis

Southwest Airlines is currently trading at $53.54/share, down -2.7% for the day. The company is trading at approximately 91.1% of its 52-week high of $58.77/share. The company’s stock price is down -5.6% since the last earnings report and down -1.7% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 49.18 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:LUV Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 11.9x and a forward P/E multiple of 12.2x. Southwest Airlines’ current share price also implies a price-to-book (P/B) multiple of 2.9x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $53.54
P/E Ratio 11.9x
P/E Ratio (Fwd) 12.2x
PEG Ratio 2.9
Total Debt to Capital (%) 13.2%
Levered Free Cash Flow $2.843 billion
Enterprise Value / EBITDA 7.0x

Source: Finbox

Company Profile: Southwest Airlines Co.

Southwest Airlines Co. is a large-cap stock with a market capitalization of $28.95 billion and a total enterprise value of $29.339 billion. The company operates in the Industrials sector and the Airline industry.

Southwest Airlines Co. operates a passenger airline that provides scheduled air transportation services in the United States and near-international markets.

As of December 31, 2018, the company operated a total of 750 Boeing 737 aircraft; and served 99 destinations in 40 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as 10 near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. It also offers inflight entertainment and connectivity service on Wi-Fi enabled aircraft; and sells points and related services to business partners participating in the Rapid Rewards loyalty program, such as car rental agencies, hotels, restaurants, and retailers.

The company provides a suite of digital platforms to support customers’ needs across the travel journey, including Southwest.com, mobile.southwest.com, an iOS app, and an android app; and Swabiz.com, a Website for business customers that offer businesses shared stored company credit cards, company activity reporting, and centralized traveler management services.

Southwest Airlines Co. was founded in 1967 and is based in Dallas, Texas.

Travelers Q4 Earnings: Can TRV Hit Its $3.21 EPS Target?

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The Travelers Companies, Inc. (NYSE:TRV) is scheduled to report Q4 earnings results on January 23, 2020, before markets open for trading.

The company is expected to report earnings of $3.21/share on revenue of $7.265 billion. The consensus earnings per share (EPS) of $3.21/share is based on a poll of 21 analysts and represents a growth of 50.7% over the same quarter last year when the company reported earnings of $2.13/share.

The revenue forecast of $7.265 billion based on a poll of 6 analysts implies a year-over-year (YoY) growth of 4.6%. Last year the company reported $6.945 billion in revenue for the quarter.

Expected to report EPS growth of $1.08/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $7,265.00 $6,945.00 4.6%
EPS $3.21 $2.13 50.7%

Earnings Call Trends

Historically, management has exceeded analyst expectations 3 out of the last 8 tracked quarters, and missed expectations 5 quarters.

What are your expectations from Travelers for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $2.38 $1.43 -39.9% Missed
Q2, 2019 $2.33 $2.02 -13.5% Missed
Q1, 2019 $2.74 $2.83 3.3% Beat
Q4, 2018 $2.14 $2.13 -0.5% Missed
Q3, 2018 $2.25 $2.54 13.1% Beat
Q2, 2018 $2.39 $1.81 -24.3% Missed
Q1, 2018 $2.75 $2.46 -10.5% Missed
Q4, 2017 $1.46 $2.28 56.2% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.

After the last earnings report for the period ending September 30, 2019, the stock price reacted by falling by -6.9%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-22 $141.91 $132.16 -6.9% Decline
2019-07-23 $149.71 $148.85 -0.6% Decline
2019-04-18 $135.87 $138.93 2.3% Increase
2019-01-22 $124.01 $123.02 -0.8% Decline

Fundamentals And Technical Analysis

Travelers is currently trading at $140.91/share, up 0.1% for the day. The company is trading at approximately 90.9% of its 52-week high of $155.09/share. The company’s stock price is up 6.6% since the last earnings report and up 3.1% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 67.02 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:TRV Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 15.3x and a forward P/E multiple of 14.5x. Travelers’ current share price also implies a price-to-book (P/B) multiple of 1.4x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $140.91
P/E Ratio 15.3x
P/E Ratio (Fwd) 14.5x
PEG Ratio 1.8
Total Debt to Capital (%) 16.1%
Levered Free Cash Flow $4.741 billion
Enterprise Value / EBITDA 10.9x

Source: Finbox

Company Profile: The Travelers Companies, Inc.

The Travelers Companies, Inc. is a large-cap stock with a market capitalization of $36.324 billion and a total enterprise value of $42.765 billion. The company operates in the Financial sector and the Insurance industry.

The Travelers Companies, Inc., through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United States and internationally. The company operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance.

The Business Insurance segment offers workers’ compensation, commercial automobile and property, general liability, commercial multi-peril, employers’ liability, public and product liability, professional indemnity, marine, aviation, onshore and offshore energy, construction, terrorism, personal accident, and kidnap and ransom insurance products. This segment operates through select accounts, which serve small businesses; commercial accounts that serve mid-sized businesses; national accounts, which serve large companies; and national property and other that serve large and mid-sized customers, commercial transportation industry, and agricultural businesses, as well as markets and distributes its products through brokers, wholesale agents, program managers, and specialized retail agents.

The Bond & Specialty Insurance segment provides surety, fidelity, management and professional liability, and other property and casualty insurance products.

The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals.

The company distributes its products primarily through independent agencies and brokers.

The Travelers Companies, Inc. was founded in 1853 and is based in New York, New York.

Procter & Gamble Q2 Earnings: Is PG Expensive at 72.1x Price/EPS?

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The Procter & Gamble Company (NYSE:PG) is scheduled to report Q2 earnings results on January 23, 2020, before markets open for trading.

The company is expected to report earnings of $1.38/share on revenue of $18.329 billion. The consensus earnings per share (EPS) of $1.38/share is based on a poll of 18 analysts and represents a growth of 10.4% over the same quarter last year when the company reported earnings of $1.25/share.

The revenue forecast of $18.329 billion based on a poll of 13 analysts implies a year-over-year (YoY) growth of 5.1%. Last year the company reported $17.438 billion in revenue for the quarter.

Expected to report EPS growth of $0.13/share for Q2, 2019
Metric Expected Prior Year YoY Change
Revenue $18,329.28 $17,438.00 5.1%
EPS $1.38 $1.25 10.4%

Earnings Call Trends

Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.

What are your expectations from Procter & Gamble for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q1, 2020 $1.24 $1.37 10.2% Beat
Q4, 2019 $1.05 $1.10 4.8% Beat
Q3, 2019 $1.03 $1.06 3.1% Beat
Q2, 2019 $1.21 $1.25 3.2% Beat
Q1, 2019 $1.09 $1.12 2.8% Beat
Q4, 2018 $0.90 $0.94 4.5% Beat
Q3, 2018 $0.98 $1 1.7% Beat
Q2, 2018 $1.14 $1.19 4.4% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.

After the last earnings report for the period ending September 30, 2019, the stock price reacted by increasing by 3.3%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-22 $119.08 $123 3.3% Increase
2019-07-30 $116 $118.04 1.8% Increase
2019-04-23 $106.01 $103.69 -2.2% Decline
2019-01-23 $90.44 $94.30 4.3% Increase

Fundamentals And Technical Analysis

Procter & Gamble is currently trading at $126.09/share, down -0.3% for the day. The company is trading at approximately 99.3% of its 52-week high of $127/share. The company’s stock price is up 2.5% since the last earnings report and up 1.1% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 64.25 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:PG Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 72.1x and a forward P/E multiple of 24.2x. Procter & Gamble’s current share price also implies a price-to-book (P/B) multiple of 6.9x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2020.Q1
Period End Date September 30, 2019
Stock Price (Current) $126.09
P/E Ratio 72.1x
P/E Ratio (Fwd) 24.2x
PEG Ratio 5.7
Total Debt to Capital (%) 8.8%
Levered Free Cash Flow $12.498 billion
Enterprise Value / EBITDA 18.8x

Source: Finbox

Company Profile: The Procter & Gamble Company

The Procter & Gamble Company is a large-cap stock with a market capitalization of $315.2 billion and a total enterprise value of $337.7 billion. The company operates in the Consumer Staples sector and the Household Products industry.

The Procter & Gamble Company provides branded consumer packaged goods to consumers in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa. It operates in five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care.

The Beauty segment offers conditioners, shampoos, styling aids, and treatments; and antiperspirants and deodorants, and personal cleansing and skincare products under the Head & Shoulders, Herbal Essences, Pantene, Rejoice, Olay, Old Spice, Safeguard, SK-II, and Secret brands. The Grooming segment provides female and male blades and razors, pre-shave and post-shave products, and other shave care products; and appliances that include electric shavers and epilators under the Braun, Gillette, and Venus brands.

The Health Care segment offers toothbrushes, toothpaste, and other oral care products; and gastrointestinal, rapid diagnostics, respiratory, vitamins/minerals/supplements, pain relief, and other personal health care products under the Crest, Oral-B, Metamucil, Neurobion, Pepto Bismol, and Vicks brands. The Fabric & Home Care segment provides fabric enhancers, laundry additives, and laundry detergents; and air care, dish care, P&G professional, and surface care products under the Ariel, Downy, Gain, Tide, Cascade, Dawn, Fairy, Febreze, Mr. Clean, and Swiffer brands.

The Baby, Feminine & Family Care segment baby wipes, taped diapers, and pants; adult incontinence and feminine care products; and paper towels, tissues, and toilet papers under the Luvs, Pampers Always, Always Discreet, Tampax Bounty, Charmin, and Puffs brands.

The company sells its products through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores, high-frequency stores, and pharmacies.

The Procter & Gamble Company was founded in 1837 and is headquartered in Cincinnati, Ohio.

Q4 Earnings Preview for Banner (BANR)

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Banner Corporation (NASDAQGS:BANR) is scheduled to report Q4 earnings results on January 23, 2020, after markets close for trading. Webcast details can be found here.

The company is expected to report earnings of $1.02/share on revenue of $137.5 million. The consensus earnings per share (EPS) of $1.02/share is based on a poll of 5 analysts and represents a decline of -6.4% over the same quarter last year when the company reported earnings of $1.09/share.

The revenue forecast of $137.5 million based on a poll of 5 analysts implies a year-over-year (YoY) decline of -0.7%. Last year the company reported $138.5 million in revenue for the quarter.

Expected to report EPS decline of -$0.07/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $137.53 $138.48 -0.7%
EPS $1.02 $1.09 -6.4%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters.

What are your expectations from Banner for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $1.05 $1.16 10.5% Beat
Q2, 2019 $1.05 $1.15 9.5% Beat
Q1, 2019 $1.05 $0.99 -5.7% Missed
Q4, 2018 $1.06 $1.09 2.8% Beat
Q3, 2018 $0.96 $1.19 23.3% Beat
Q2, 2018 $0.86 $1 15.6% Beat
Q1, 2018 $0.75 $0.81 8.0% Beat
Q4, 2017 $0.74 $0.71 -4.1% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending September 30, 2019, the stock price did not react much to the update.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-23 $55.61 $55.07 -1.0% Decline
2019-07-24 $54.19 $57.77 6.6% Increase
2019-04-24 $55.43 $51.78 -6.6% Decline
2019-01-23 $55.95 $55.77 -0.3% Decline

Fundamentals And Technical Analysis

Banner is currently trading at $54.01/share, down -1.6% for the day. The company is trading at approximately 84.1% of its 52-week high of $64.20/share. The company’s stock price is down -1.9% since the last earnings report and down -0.8% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 47.32 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NASDAQGS:BANR Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 12.5x and a forward P/E multiple of 12.5x. Banner’s current share price also implies a price-to-book (P/B) multiple of 1.2x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $54.01
P/E Ratio 12.5x
P/E Ratio (Fwd) 12.5x
PEG Ratio -7.2
Total Debt to Capital (%) 27.0%
Levered Free Cash Flow -$14.043 million
Market Capitalization $1.875 billion

Source: Finbox

Company Profile: Banner Corporation

Banner Corporation is a small-cap stock with a market capitalization of $1.875 billion. The company operates in the Financial sector and the Banks industry.

Banner Corporation operates as the bank holding company for Banner Bank and Islanders Bank that provides commercial banking and financial products and services to individuals, businesses, and public sector entities primarily in the United States.

It offers deposit products, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts, and certificates of deposit, as well as treasury management services and retirement savings plans. The company also provides commercial real estate loans, including owner-occupied, investment properties, and multifamily residential real estate loans; construction, land, and land development loans; residential mortgage loans; commercial business loans; agricultural loans; and consumer loans, such as home equity lines of credit, automobile, and boat and recreational vehicle loans, as well as loans secured by deposit accounts. In addition, it engages in mortgage banking operations through the origination and sale of one- to four-family and multi-family residential loans.

Further, the company provides electronic and digital banking services. As of December 31, 2018, it operated 182 branch offices, including 179 Banner Bank branches and 3 Islanders Bank branches located in Washington, Oregon, California, and Idaho. It also operates 17 Banner Bank loan production offices located in Washington, Oregon, California, Idaho, and Utah.

Banner Corporation was founded in 1890 and is based in Walla Walla, Washington.

Q4 Earnings Preview for Union Pacific (UNP)

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Union Pacific Corporation (NYSE:UNP) is scheduled to report Q4 earnings results on January 23, 2020, before markets open for trading.

The company is expected to report earnings of $2.05/share on revenue of $5.208 billion. The consensus earnings per share (EPS) of $2.05/share is based on a poll of 25 analysts and represents a decline of -3.3% over the same quarter last year when the company reported earnings of $2.12/share.

The revenue forecast of $5.208 billion based on a poll of 17 analysts implies a year-over-year (YoY) decline of -9.5%. Last year the company reported $5.757 billion in revenue for the quarter.

Expected to report EPS decline of -$0.07/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $5,208.25 $5,757.00 -9.5%
EPS $2.05 $2.12 -3.3%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters.

What are your expectations from Union Pacific for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $2.30 $2.22 -3.5% Missed
Q2, 2019 $2.13 $2.22 4.2% Beat
Q1, 2019 $1.87 $1.93 3.0% Beat
Q4, 2018 $2.07 $2.12 2.3% Beat
Q3, 2018 $2.09 $2.15 2.9% Beat
Q2, 2018 $1.95 $1.98 1.5% Beat
Q1, 2018 $1.66 $1.68 1.3% Beat
Q4, 2017 $1.55 $1.53 -1.3% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.

After the last earnings report for the period ending September 30, 2019, the stock price reacted by falling by -1.1%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-17 $163.31 $161.50 -1.1% Decline
2019-07-18 $164.55 $175.30 6.5% Increase
2019-04-18 $169.28 $176.66 4.4% Increase
2019-01-24 $154.33 $160.95 4.3% Increase

Fundamentals And Technical Analysis

Union Pacific is currently trading at $182.46/share, down -1.5% for the day. The company is trading at approximately 98.3% of its 52-week high of $185.65/share. The company’s stock price is up 13.0% since the last earnings report and up 0.9% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 66.49 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:UNP Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 21.2x and a forward P/E multiple of 21.7x. UP’s current share price also implies a price-to-book (P/B) multiple of 7.1x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $182.46
P/E Ratio 21.2x
P/E Ratio (Fwd) 21.7x
PEG Ratio 3.1
Total Debt to Capital (%) 17.7%
Levered Free Cash Flow $5.072 billion
Enterprise Value / EBITDA 14.3x

Source: Finbox

Company Profile: Union Pacific Corporation

Union Pacific Corporation is a large-cap stock with a market capitalization of $128.6 billion and a total enterprise value of $155 billion. The company operates in the Industrials sector and the Road & Rail industry.

Union Pacific Corporation engages in the railroad business in the United States. It offers transportation services for agricultural products, including grains, commodities produced from grains, fertilizers, and food and beverage products; coal and sand, as well as petroleum, liquid petroleum gases, and renewables; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, and soda ash, as well as intermodal and finished vehicles. As of December 31, 2018, its rail network included 32,236 route miles linking Pacific Coast and Gulf Coast ports with the Midwest and Eastern United States gateways.

Union Pacific Corporation was founded in 1862 and is headquartered in Omaha, Nebraska.

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