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Canadian Pacific (CP) Misses Q2 Earnings & Revenue Estimates
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Canadian Pacific Kansas City Limited (CP - Free Report) reported second-quarter 2023 earnings per share of 62 cents (C$0.83), which fell short of the Zacks Consensus Estimate of 69 cents. Moreover, the bottom line decreased year over year. Quarterly revenues of $2,363.1 million (C$3,174 million) missed the Zacks Consensus Estimate of $2,467.8 million but improved year over year.
Freight revenues, contributing 97.7% to the top line, rose 43.9% on a year-over-year basis. CP’s freight segment consists of Grain (up 45%), Coal (up 34%), Potash (down 16%), Forest products (up 80%), Energy, chemicals and plastics (up 69%), Metals, minerals and consumer products (up 93%), Automotive (up 114%), Fertilizers and Sulphur (up 5%) and Intermodal (up 14%).
In the reported quarter, total freight revenues per revenue ton-miles rose 16% year over year. Total freight revenues per carload decreased 4% from the year-ago quarter’s reported figure.
On a reported basis, operating income was up 8.8%, while total operating expenses increased 67.2% year over year in the quarter under review. Operating ratio (operating expenses as a percentage of revenues) improved 970 basis points to 70.3% from 60.6% in the year-ago quarter.
Canadian Pacific Kansas City Limited Price, Consensus and EPS Surprise
CP exited the second quarter with cash and cash equivalents of C$325 million compared with C$290 million at the first-quarter end. Long-term debt amounted to C$21,353 million compared with C$18,066 million at the end of prior quarter.
Management expects adjusted earnings for 2023 to register mid-single-digits year-over-year growth from 2022.
Currently, Canadian Pacific carries a Zacks Rank #5 (Strong Sell).
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) second-quarter 2023 EPS of $1.81 missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year.
JBHT’s total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million and fell 18.4% year over year. The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal, 21% in Truckload and a 4% decline in productivity in Dedicated Capacity Solutions on the back of changes in customer rate, freight mix and lower fuel surcharge revenue.
Total operating revenues, excluding fuel surcharges, decreased 14% year over year.
Delta Air Lines (DAL - Free Report) reported better-than-expected revenues and EPS, driven by strong air-travel demand. DAL’s second-quarter 2023 EPS (excluding 16 cents from non-recurring items) of $2.68 comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported EPS of $1.44 a year ago, dull compared to the current scenario, as air-travel demand was not so buoyant then.
DAL’s total revenues of $15,578 million beat the Zacks Consensus Estimate of $14,991.6 million. Total revenues increased 12.69% on a year-over-year basis, driven by higher air-travel demand.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2023 EPS of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year.
Operating revenues of $14,178 million beat the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues increased 17.1% year over year due to upbeat air-travel demand. The year-over-year increase in the top line was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.
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Canadian Pacific (CP) Misses Q2 Earnings & Revenue Estimates
Canadian Pacific Kansas City Limited (CP - Free Report) reported second-quarter 2023 earnings per share of 62 cents (C$0.83), which fell short of the Zacks Consensus Estimate of 69 cents. Moreover, the bottom line decreased year over year. Quarterly revenues of $2,363.1 million (C$3,174 million) missed the Zacks Consensus Estimate of $2,467.8 million but improved year over year.
Freight revenues, contributing 97.7% to the top line, rose 43.9% on a year-over-year basis. CP’s freight segment consists of Grain (up 45%), Coal (up 34%), Potash (down 16%), Forest products (up 80%), Energy, chemicals and plastics (up 69%), Metals, minerals and consumer products (up 93%), Automotive (up 114%), Fertilizers and Sulphur (up 5%) and Intermodal (up 14%).
In the reported quarter, total freight revenues per revenue ton-miles rose 16% year over year. Total freight revenues per carload decreased 4% from the year-ago quarter’s reported figure.
On a reported basis, operating income was up 8.8%, while total operating expenses increased 67.2% year over year in the quarter under review. Operating ratio (operating expenses as a percentage of revenues) improved 970 basis points to 70.3% from 60.6% in the year-ago quarter.
Canadian Pacific Kansas City Limited Price, Consensus and EPS Surprise
Canadian Pacific Kansas City Limited price-consensus-eps-surprise-chart | Canadian Pacific Kansas City Limited Quote
CP exited the second quarter with cash and cash equivalents of C$325 million compared with C$290 million at the first-quarter end. Long-term debt amounted to C$21,353 million compared with C$18,066 million at the end of prior quarter.
Management expects adjusted earnings for 2023 to register mid-single-digits year-over-year growth from 2022.
Currently, Canadian Pacific carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) second-quarter 2023 EPS of $1.81 missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year.
JBHT’s total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million and fell 18.4% year over year. The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal, 21% in Truckload and a 4% decline in productivity in Dedicated Capacity Solutions on the back of changes in customer rate, freight mix and lower fuel surcharge revenue.
Total operating revenues, excluding fuel surcharges, decreased 14% year over year.
Delta Air Lines (DAL - Free Report) reported better-than-expected revenues and EPS, driven by strong air-travel demand. DAL’s second-quarter 2023 EPS (excluding 16 cents from non-recurring items) of $2.68 comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported EPS of $1.44 a year ago, dull compared to the current scenario, as air-travel demand was not so buoyant then.
DAL’s total revenues of $15,578 million beat the Zacks Consensus Estimate of $14,991.6 million. Total revenues increased 12.69% on a year-over-year basis, driven by higher air-travel demand.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2023 EPS of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year.
Operating revenues of $14,178 million beat the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues increased 17.1% year over year due to upbeat air-travel demand. The year-over-year increase in the top line was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.