(The Associated Press circulated the following on December 7.)
NEW YORK — A Lehman Brothers analyst on Thursday trimmed fourth-quarter estimates for Union Pacific Corp. due to lower freight volumes, but said robust pricing will continue to support the industry’s earnings going forward.
Lehman’s Gary Chase lowered his fourth-quarter earnings expectations on Union Pacific to $1.58 per share from $1.61, previously. Chase subsequently revised his full-year forecast to $5.71 from $5.80 per share.
On average, analysts polled by Thomson Financial presently predict fourth-quarter profit of $1.57 per share and full-year earnings of $5.71 per share.
“While we have reduced our more optimistic forecasts modestly, we believe firm pricing will continue to drive good earnings and margins for the group,” Chase said in an accompanying note on the industry.
Chase retained his “Equal Weight” rating on the Union Pacific and target price of $102.
Shares of Omaha, Neb.-based Union Pacific fell 38 cents to $93.26 in afternoon trading on the New York Stock Exchange.