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Canadian Pacific (CP) Q3 Earnings Beat Estimates, Decrease Y/Y
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Canadian Pacific Kansas City Limited (CP - Free Report) reported third-quarter 2023 earnings (excluding 6 cents from non-recurring items) per share of 69 cents (C$0.84), which beat the Zacks Consensus Estimate of 68 cents. Nonetheless, the bottom line decreased 10.4% year over year. However, quarterly revenues of $2,489.1 million (C$3,339 million) surpassed the Zacks Consensus Estimate of $2,487.4 million and improved 40.4% year over year.
Freight revenues, contributing 97.8% to the top line, rose 44.3% on a year-over-year basis. We suggested the metric to jump 49.2% from third-quarter 2022 actuals. CP’s freight segment contains Grain (up 53.5%), Coal (up 46.8%), Potash (down 21.8%), Forest products (up 82.6%), Energy, chemicals and plastics (up 78.6%), Metals, minerals and consumer products (up 84.9%), Automotive (up 139.6%), Fertilizers and Sulphur (up 12.3%), and Intermodal (up 1.6%).
In the reported quarter, total Freight revenues per revenue ton-miles gained 10% year over year. Total Freight revenues per carload declined 7% from a year ago.
On a reported basis, operating income was up 25.2%. Total operating expenses increased 58% year over year. Operating ratio (operating expenses as a percentage of revenues) improved 540 basis points to 64.9% from 59.5% in the year-ago quarter.
Canadian Pacific Kansas City Limited Price, Consensus and EPS Surprise
CP exited the third quarter with cash and cash equivalents of C$294 million compared with C$451 million in fourth-quarter 2022. Long-term debt amounted to C$21,762 million compared with C$18,141 million at the end of fourth-quarter 2022.
Management expects adjusted earnings for 2023 to register flat to slightly positive year-over-year growth from 2022.
United Airlines (UAL - Free Report) reported third-quarter 2023 earnings per share (excluding 23 cents from non-recurring items) of $3.65, which outpaced the Zacks Consensus Estimate of $3.40 and improved 29.9% year over year.
Operating revenues of $14,484 million outpaced the Zacks Consensus Estimate of $14,441.8 million. The top line increased 12.5% year over year due to upbeat air-travel demand.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) third-quarter 2023 earnings per share of $1.80 lagged the Zacks Consensus Estimate of $1.85 and declined 30% year over year.
Total operating revenues of $3,163.8 million also lagged the Zacks Consensus Estimate of $3,224 million and tumbled 18% year over year.
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Canadian Pacific (CP) Q3 Earnings Beat Estimates, Decrease Y/Y
Canadian Pacific Kansas City Limited (CP - Free Report) reported third-quarter 2023 earnings (excluding 6 cents from non-recurring items) per share of 69 cents (C$0.84), which beat the Zacks Consensus Estimate of 68 cents. Nonetheless, the bottom line decreased 10.4% year over year. However, quarterly revenues of $2,489.1 million (C$3,339 million) surpassed the Zacks Consensus Estimate of $2,487.4 million and improved 40.4% year over year.
Freight revenues, contributing 97.8% to the top line, rose 44.3% on a year-over-year basis. We suggested the metric to jump 49.2% from third-quarter 2022 actuals. CP’s freight segment contains Grain (up 53.5%), Coal (up 46.8%), Potash (down 21.8%), Forest products (up 82.6%), Energy, chemicals and plastics (up 78.6%), Metals, minerals and consumer products (up 84.9%), Automotive (up 139.6%), Fertilizers and Sulphur (up 12.3%), and Intermodal (up 1.6%).
In the reported quarter, total Freight revenues per revenue ton-miles gained 10% year over year. Total Freight revenues per carload declined 7% from a year ago.
On a reported basis, operating income was up 25.2%. Total operating expenses increased 58% year over year. Operating ratio (operating expenses as a percentage of revenues) improved 540 basis points to 64.9% from 59.5% 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 third quarter with cash and cash equivalents of C$294 million compared with C$451 million in fourth-quarter 2022. Long-term debt amounted to C$21,762 million compared with C$18,141 million at the end of fourth-quarter 2022.
Management expects adjusted earnings for 2023 to register flat to slightly positive year-over-year growth from 2022.
Currently, Canadian Pacific carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q3 Performance of Other Players
United Airlines (UAL - Free Report) reported third-quarter 2023 earnings per share (excluding 23 cents from non-recurring items) of $3.65, which outpaced the Zacks Consensus Estimate of $3.40 and improved 29.9% year over year.
Operating revenues of $14,484 million outpaced the Zacks Consensus Estimate of $14,441.8 million. The top line increased 12.5% year over year due to upbeat air-travel demand.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) third-quarter 2023 earnings per share of $1.80 lagged the Zacks Consensus Estimate of $1.85 and declined 30% year over year.
Total operating revenues of $3,163.8 million also lagged the Zacks Consensus Estimate of $3,224 million and tumbled 18% year over year.