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Canadian National (CNI) Stock Up 7.1% on Q2 Earnings Beat
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Canadian National Railway Company (CNI - Free Report) stock has gained 7.1% since its second-quarter 2022 earnings release on Jul 26. The uptick can be attributed to better-than-expected earnings and revenue performance.
Quarterly earnings (excluding a penny from non-recurring items) of $1.51 per share (C$1.93) outpaced the Zacks Consensus Estimate of $1.37 and improved 24.7% year over year.
Quarterly revenues of $3,403.9 million (C$4,344 million) outperformed the Zacks Consensus Estimate of $3,169.5 million and increased 16.2% year over year. The uptick was driven by higher applicable fuel surcharge rates, freight rate increases, higher Canadian export volumes of coal via west coast ports, higher volumes of U.S. grain and the positive translation impact of a weaker Canadian dollar.
Canadian National Railway Company Price, Consensus and EPS Surprise
Freight revenues (C$4,195 million), which contributed 96.5% to the top line, increased 22% year over year. Freight revenues at the Petroleum and Chemicals; Metals and minerals; Forest products; Coal; Intermodal; and Automotive segments increased 21%, 24%, 14%, 58%, 28% and 54%, respectively. However, Freight revenues in the Grain and fertilizers segment declined by 1%.
While overall carloads (volumes) fell 0.3% year over year, revenue ton miles (RTMs) grew 2%. Segment-wise, carloads in Petroleum and chemicals; Coal and Automotive grew 13%, 29% and 31%, respectively. The same at Metals and minerals; Forest products, Grain and fertilizers and Intermodal decreased by 2%, 4%, 12% and 4%, respectively. Freight revenues per carload climbed 21% year over year in the reported quarter, while freight revenues per RTM improved 19%.
Operating expenses (on a reported basis) ascended 16.2% to C$2,575 million. Adjusted operating income increased 28.9% year over year to C$1,781 million. Adjusted operating ratio (defined as operating expenses as a percentage of revenues) deteriorated to 59% in the second quarter of 2022 from 61.6% in the second quarter of 2021.
Liquidity
Canadian National generated free cash flow of C$997 million during the June quarter compared with the year-ago quarter’s C$741 million.
2022 Outlook
Canadian National reaffirmed its full-year 2022 guidance. The company continues to expect adjusted earnings to increase 15-20% year over year in 2022. Operating ratio is estimated to be below 60% for 2022. The company anticipates free cash flow in the band of C$3.7 billion-C$4.0 billion in the current year.
Delta AirLines’ (DAL - Free Report) second-quarter 2022 earnings (excluding 29 cents from non-recurring items) of $1.44 per share fell short of the Zacks Consensus Estimate of $1.71. Escalated operating expenses induced the earnings miss. Multiple flight cancellations in May and June also hurt results. The earnings miss disappointed investors, resulting in the stock shedding value in early trading. In the year-ago quarter, Delta incurred a loss of $1.07 per share when air-travel demand was not as buoyant as in the current scenario.
DAL’s revenues came in at $13,824 million, which not only beat the Zacks Consensus Estimate of $13,608.9 million and soared 94% from the year-ago quarter’s figure as air-travel demand rebounded from the pandemic lows. The uptick in air-travel demand in the United States can be gauged from the fact that 75.9% of second-quarter 2022 passenger revenues came from the domestic markets.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
JBHT’squarterly earnings of $2.42 per share surpassed the Zacks Consensus Estimate of $1.61 and improved 50.3% year over year.
JBHT’stotal operating revenues of $3,837.53 million also outperformed the Zacks Consensus Estimate of $2,908.37 million. The top line jumped 32% year over year on the back of strength across all segments. JBHT’s total operating revenues, excluding fuel surcharges, rose 21.2% year over year.
CSX Corporation (CSX - Free Report) ) reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
CSX’s quarterly earnings of 50 cents per share (excluding 4 cents from non-recurring items) beat the Zacks Consensus Estimate of 47 cents and improved 25% year over year.
CSX’s total revenues of $3,815 million outperformed the Zacks Consensus Estimate of $2,990 million. The top line increased 28% year over year on the back of higher revenues in almost all markets, driven by pricing gains, fuel surcharge, and contribution from the acquisition of Quality Carriers. CSX’s overall revenues per unit increased 27%.
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Canadian National (CNI) Stock Up 7.1% on Q2 Earnings Beat
Canadian National Railway Company (CNI - Free Report) stock has gained 7.1% since its second-quarter 2022 earnings release on Jul 26. The uptick can be attributed to better-than-expected earnings and revenue performance.
Quarterly earnings (excluding a penny from non-recurring items) of $1.51 per share (C$1.93) outpaced the Zacks Consensus Estimate of $1.37 and improved 24.7% year over year.
Quarterly revenues of $3,403.9 million (C$4,344 million) outperformed the Zacks Consensus Estimate of $3,169.5 million and increased 16.2% year over year. The uptick was driven by higher applicable fuel surcharge rates, freight rate increases, higher Canadian export volumes of coal via west coast ports, higher volumes of U.S. grain and the positive translation impact of a weaker Canadian dollar.
Canadian National Railway Company Price, Consensus and EPS Surprise
Canadian National Railway Company price-consensus-eps-surprise-chart | Canadian National Railway Company Quote
Freight revenues (C$4,195 million), which contributed 96.5% to the top line, increased 22% year over year. Freight revenues at the Petroleum and Chemicals; Metals and minerals; Forest products; Coal; Intermodal; and Automotive segments increased 21%, 24%, 14%, 58%, 28% and 54%, respectively. However, Freight revenues in the Grain and fertilizers segment declined by 1%.
While overall carloads (volumes) fell 0.3% year over year, revenue ton miles (RTMs) grew 2%. Segment-wise, carloads in Petroleum and chemicals; Coal and Automotive grew 13%, 29% and 31%, respectively. The same at Metals and minerals; Forest products, Grain and fertilizers and Intermodal decreased by 2%, 4%, 12% and 4%, respectively. Freight revenues per carload climbed 21% year over year in the reported quarter, while freight revenues per RTM improved 19%.
Operating expenses (on a reported basis) ascended 16.2% to C$2,575 million. Adjusted operating income increased 28.9% year over year to C$1,781 million. Adjusted operating ratio (defined as operating expenses as a percentage of revenues) deteriorated to 59% in the second quarter of 2022 from 61.6% in the second quarter of 2021.
Liquidity
Canadian National generated free cash flow of C$997 million during the June quarter compared with the year-ago quarter’s C$741 million.
2022 Outlook
Canadian National reaffirmed its full-year 2022 guidance. The company continues to expect adjusted earnings to increase 15-20% year over year in 2022. Operating ratio is estimated to be below 60% for 2022. The company anticipates free cash flow in the band of C$3.7 billion-C$4.0 billion in the current year.
Currently, Canadian National carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Transportation Companies
Delta AirLines’ (DAL - Free Report) second-quarter 2022 earnings (excluding 29 cents from non-recurring items) of $1.44 per share fell short of the Zacks Consensus Estimate of $1.71. Escalated operating expenses induced the earnings miss. Multiple flight cancellations in May and June also hurt results. The earnings miss disappointed investors, resulting in the stock shedding value in early trading. In the year-ago quarter, Delta incurred a loss of $1.07 per share when air-travel demand was not as buoyant as in the current scenario.
DAL’s revenues came in at $13,824 million, which not only beat the Zacks Consensus Estimate of $13,608.9 million and soared 94% from the year-ago quarter’s figure as air-travel demand rebounded from the pandemic lows. The uptick in air-travel demand in the United States can be gauged from the fact that 75.9% of second-quarter 2022 passenger revenues came from the domestic markets.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
JBHT’squarterly earnings of $2.42 per share surpassed the Zacks Consensus Estimate of $1.61 and improved 50.3% year over year.
JBHT’stotal operating revenues of $3,837.53 million also outperformed the Zacks Consensus Estimate of $2,908.37 million. The top line jumped 32% year over year on the back of strength across all segments. JBHT’s total operating revenues, excluding fuel surcharges, rose 21.2% year over year.
CSX Corporation (CSX - Free Report) ) reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
CSX’s quarterly earnings of 50 cents per share (excluding 4 cents from non-recurring items) beat the Zacks Consensus Estimate of 47 cents and improved 25% year over year.
CSX’s total revenues of $3,815 million outperformed the Zacks Consensus Estimate of $2,990 million. The top line increased 28% year over year on the back of higher revenues in almost all markets, driven by pricing gains, fuel surcharge, and contribution from the acquisition of Quality Carriers. CSX’s overall revenues per unit increased 27%.