We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Canadian Pacific (CP) Q3 Earnings Meet, Revenues Beat Mark
Read MoreHide Full Article
Canadian Pacific’s (CP - Free Report) third-quarter 2022 earnings (excluding 3 cents from non-recurring items) of 77 cents (C$1.01) per share matched the Zacks Consensus Estimate. The bottom line increased 10% year over year. Results were aided by higher revenues of $1,772.4 million (C$2,312 million), beating the Zacks Consensus Estimate of $1,689.8 million and increasing 14.91% year over year.
Freight revenues, contributing 97.9% to the top line, rose 19% on a year-over-year basis. CP’s freight segment consists of Grain (up 9%), Coal (down 2%), Potash (up 48%), Forest products (up 18%), Energy, chemicals and plastics (down 10%), Metals, minerals and consumer products (up 22%), Automotive (up 31%) and Intermodal (up 44%). Revenues at the Fertilizers and sulfur sub-segment were up 11% year over year. In the reported quarter, total freight revenues per revenue ton-miles (RTMs) rose 11% year over year. Total freight revenues per carload increased 7% from the year-ago quarter’s reported figure. All percentages are foreign exchange adjusted.
On a reported basis, operating income was up 21%, while total operating expenses increased 18% year over year in the quarter under review. Operating ratio (operating expenses as a percentage of revenues on an adjusted basis) improved to 58.7% in the September quarter from 59.4% in the year-ago quarter. Lower the value of the metric, the better.
Per Keith Creel, CP’s president and Chief Executive Officer, “The third quarter saw strong demand in potash and intermodal that we anticipated, and CP was well-resourced to handle the volume increases we have seen. I’m proud of the results the team delivered this quarter and excited about the opportunities in front of us.”
Liquidity
Canadian Pacific, currently carrying a Zacks Rank #3 (Hold), exited the third quarter with cash and cash equivalents of C$138 million compared with C$69 million at the end of 20021. Long-term debt amounted to C$19,339 million compared with C$18,577 million at the end of 2021.
Delta Air Lines’ (DAL - Free Report) third-quarter 2022 earnings (excluding 42 cents from non-recurring items) of $1.51 per share fell short of the Zacks Consensus Estimate of $1.56. Escalated operating expenses induced the earnings miss. Multiple flight cancelations and booking weaknesses due to Hurricane Ian also hurt results. DAL reported earnings of 30 cents per share a year ago, pale in comparison to the latest figure, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by high air-travel demand, total revenues increased more than 52% on a year-over-year basis.
United Airlines’ (UAL - Free Report) third-quarter 2022 earnings (excluding 5 cents from non-recurring items) of $2.81 per share beat the Zacks Consensus Estimate of $2.21 and our estimate of $2.17. An uptick in air-travel demand aided results.
In the year-ago quarter, UAL incurred a loss of $1.02 per share when air-travel demand was not as buoyant as in the current scenario. The third quarter of 2022 was the second consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,877 million beat the Zacks Consensus Estimate of $12,709.5 million and our estimate of $12, 631.6 million. UAL’s revenues increased more than 66% year over year owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.2% from third-quarter 2019 (pre-coronavirus) levels.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate. JBHT’s quarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.
JBHT’s operating revenues of $3,838.3 million also outperformed the Zacks Consensus Estimate of $3803.4 million. The top line jumped 22.1% year over year on the back of strength across Dedicated Contract Services, Intermodal, and Truckload and Final Mile Services segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Canadian Pacific (CP) Q3 Earnings Meet, Revenues Beat Mark
Canadian Pacific’s (CP - Free Report) third-quarter 2022 earnings (excluding 3 cents from non-recurring items) of 77 cents (C$1.01) per share matched the Zacks Consensus Estimate. The bottom line increased 10% year over year. Results were aided by higher revenues of $1,772.4 million (C$2,312 million), beating the Zacks Consensus Estimate of $1,689.8 million and increasing 14.91% year over year.
Freight revenues, contributing 97.9% to the top line, rose 19% on a year-over-year basis. CP’s freight segment consists of Grain (up 9%), Coal (down 2%), Potash (up 48%), Forest products (up 18%), Energy, chemicals and plastics (down 10%), Metals, minerals and consumer products (up 22%), Automotive (up 31%) and Intermodal (up 44%). Revenues at the Fertilizers and sulfur sub-segment were up 11% year over year. In the reported quarter, total freight revenues per revenue ton-miles (RTMs) rose 11% year over year. Total freight revenues per carload increased 7% from the year-ago quarter’s reported figure. All percentages are foreign exchange adjusted.
On a reported basis, operating income was up 21%, while total operating expenses increased 18% year over year in the quarter under review. Operating ratio (operating expenses as a percentage of revenues on an adjusted basis) improved to 58.7% in the September quarter from 59.4% in the year-ago quarter. Lower the value of the metric, the better.
Per Keith Creel, CP’s president and Chief Executive Officer, “The third quarter saw strong demand in potash and intermodal that we anticipated, and CP was well-resourced to handle the volume increases we have seen. I’m proud of the results the team delivered this quarter and excited about the opportunities in front of us.”
Liquidity
Canadian Pacific, currently carrying a Zacks Rank #3 (Hold), exited the third quarter with cash and cash equivalents of C$138 million compared with C$69 million at the end of 20021. Long-term debt amounted to C$19,339 million compared with C$18,577 million at the end of 2021.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Transportation Companies
Delta Air Lines’ (DAL - Free Report) third-quarter 2022 earnings (excluding 42 cents from non-recurring items) of $1.51 per share fell short of the Zacks Consensus Estimate of $1.56. Escalated operating expenses induced the earnings miss. Multiple flight cancelations and booking weaknesses due to Hurricane Ian also hurt results. DAL reported earnings of 30 cents per share a year ago, pale in comparison to the latest figure, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by high air-travel demand, total revenues increased more than 52% on a year-over-year basis.
United Airlines’ (UAL - Free Report) third-quarter 2022 earnings (excluding 5 cents from non-recurring items) of $2.81 per share beat the Zacks Consensus Estimate of $2.21 and our estimate of $2.17. An uptick in air-travel demand aided results.
In the year-ago quarter, UAL incurred a loss of $1.02 per share when air-travel demand was not as buoyant as in the current scenario. The third quarter of 2022 was the second consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,877 million beat the Zacks Consensus Estimate of $12,709.5 million and our estimate of $12, 631.6 million. UAL’s revenues increased more than 66% year over year owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.2% from third-quarter 2019 (pre-coronavirus) levels.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate. JBHT’s quarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.
JBHT’s operating revenues of $3,838.3 million also outperformed the Zacks Consensus Estimate of $3803.4 million. The top line jumped 22.1% year over year on the back of strength across Dedicated Contract Services, Intermodal, and Truckload and Final Mile Services segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.