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Canadian Pacific's (CP) Q3 Earnings In Line, Revenues Miss
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Canadian Pacific Railway Limited (CP - Free Report) reported in-line earnings and lower-than-expected revenues in third-quarter 2017. The company’s earnings (excluding 48 cents from non-recurring items) of $2.31 per share (C$2.90) were in line with the Zacks Consensus Estimate. However, earnings improved 10.5% from the year-ago figure.
Quarterly revenues increased 6.7% year over year to $1,272 million (C$1,595 million) but fell short of the Zacks Consensus Estimate of $1300.6 million. Freight revenues, which improved 2.5% year over year, accounted for bulk (97%) of the top line.
The company's freight segment consists of Grain (down 6%), Coal (up 3%), Potash (up 27%), Sulfur and Fertilizer (down 19%), Forest products (down 6%), Energy, Chemicals and Plastics (up 11%), Metals, Minerals and Consumer products (up 35%), Automotive (down 21%) and Intermodal (down 2%). Total freight revenues per revenue ton miles (RTMs) slipped 1% year over year in the reported quarter. Additionally, freight revenues per car load decreased 7% in the quarter.
Operating income (on an adjusted basis) climbed 5% in the third quarter. Operating ratio (operating expenses as a percentage of revenues on an adjusted basis) came in at 56.7% compared with 57.7% a year ago.
With increased volumes, the company raised guidance for full-year 2017. Canadian Pacific now expects a double-digit rise in adjusted earnings per share for 2017 compared with C$10.29 in 2016.
Canadian Pacific Railway Limited Price, Consensus and EPS Surprise
This Zacks Rank #3 (Hold) company exited the third quarter with cash and cash equivalents of C$142 million compared with C$164 million at the end of 2016. Long-term debt totaled C$7,384 million compared with C$8,659 million in December 2016. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the railroad space are keenly awaiting third-quarter earnings reports from key players like Canadian National Railway Company (CNI - Free Report) , Kansas City Southern and Norfolk Southern Corporation (NSC - Free Report) . While Canadian National is scheduled to report third-quarter results on Oct 24, Kansas City Southern and Norfolk Southern will report on Oct 20 and Oct 25, respectively.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Canadian Pacific's (CP) Q3 Earnings In Line, Revenues Miss
Canadian Pacific Railway Limited (CP - Free Report) reported in-line earnings and lower-than-expected revenues in third-quarter 2017. The company’s earnings (excluding 48 cents from non-recurring items) of $2.31 per share (C$2.90) were in line with the Zacks Consensus Estimate. However, earnings improved 10.5% from the year-ago figure.
Quarterly revenues increased 6.7% year over year to $1,272 million (C$1,595 million) but fell short of the Zacks Consensus Estimate of $1300.6 million. Freight revenues, which improved 2.5% year over year, accounted for bulk (97%) of the top line.
The company's freight segment consists of Grain (down 6%), Coal (up 3%), Potash (up 27%), Sulfur and Fertilizer (down 19%), Forest products (down 6%), Energy, Chemicals and Plastics (up 11%), Metals, Minerals and Consumer products (up 35%), Automotive (down 21%) and Intermodal (down 2%). Total freight revenues per revenue ton miles (RTMs) slipped 1% year over year in the reported quarter. Additionally, freight revenues per car load decreased 7% in the quarter.
Operating income (on an adjusted basis) climbed 5% in the third quarter. Operating ratio (operating expenses as a percentage of revenues on an adjusted basis) came in at 56.7% compared with 57.7% a year ago.
With increased volumes, the company raised guidance for full-year 2017. Canadian Pacific now expects a double-digit rise in adjusted earnings per share for 2017 compared with C$10.29 in 2016.
Canadian Pacific Railway Limited Price, Consensus and EPS Surprise
Canadian Pacific Railway Limited Price, Consensus and EPS Surprise | Canadian Pacific Railway Limited Quote
Liquidity
This Zacks Rank #3 (Hold) company exited the third quarter with cash and cash equivalents of C$142 million compared with C$164 million at the end of 2016. Long-term debt totaled C$7,384 million compared with C$8,659 million in December 2016. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the railroad space are keenly awaiting third-quarter earnings reports from key players like Canadian National Railway Company (CNI - Free Report) , Kansas City Southern and Norfolk Southern Corporation (NSC - Free Report) . While Canadian National is scheduled to report third-quarter results on Oct 24, Kansas City Southern and Norfolk Southern will report on Oct 20 and Oct 25, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>