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Canadian Pacific Q1 Earnings & Revenues Miss Estimates, Improve Y/Y
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Key Takeaways
CP's Q1 EPS of 76 cents and revenues of $2.69B missed the Zacks Consensus Estimate.
CP expects 2026 core adjusted earnings per share to grow in the low double digits from the 2025 actuals.
Canadian Pacific expects 2026 RTMs to increase in the mid-single digits from the 2025 actuals.
Canadian Pacific Kansas City(CP - Free Report) reported unimpressive first-quarter 2026 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
Quarterly earnings (excluding 7 cents from non-recurring items) of 76 cents per share missed the Zacks Consensus Estimate of 78 cents. The bottom line improved 2.7% on a year-over-year basis. Operating revenues of $2.69 billion lagged the Zacks Consensus Estimate of $2.71 billion. However, the top line improved 2.1% on a year-over-year basis.
In the reported quarter, total Freight revenues per revenue ton miles fell 4% year over year. Total Freight revenues per carload declined 1% year over year.
Canadian Pacific Kansas City Limited Price, Consensus and EPS Surprise
On a reported basis, operating income decreased 4.5% year over year. Total operating expenses fell 1.4% year over year.
CP’s Segmental Highlights
Freight revenues, which accounted for 98% of the top line, decreased 3% year over year. CP’s Freight segment contains Grain (up 11%), Coal (down 12%), Potash (down 4%), Fertilizers and Sulphur (down 2%), Metals, minerals and consumer products (down 2%), Automotive (down 6%) and Intermodal (down 3%). Meanwhile, Energy, chemicals and plastics and Forest products fell 8% and 17% year over year, respectively.
Other revenues increased 7% year over year in the first quarter of 2026.
CP’s Liquidity
CP exited the first quarter with cash and cash equivalents of C$409 million compared with C$184 million at the prior-quarter end. Long-term debt amounted to C$21.88 billion compared with C$19.94 billion at the prior-quarter end.
CP’s Outlook
Canadian Pacific expects 2026 core adjusted earnings per share to grow in the low double-digits from the 2025 actuals to C$4.61 per share.
The company expects 2026 RTMs to increase in the mid-single digits from the 2025 actuals.
Management expects capital expenditures to be C$2.65 billion for the full year. The core adjusted effective tax rate for 2026 is expected to be 24.75%.
Delta Air Lines (DAL - Free Report) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis due to high labor costs. Adjusted revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis.
United Airlines Holdings, Inc. (UAL - Free Report) reported solid first-quarter 2026 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate as well as improved on a year-over-year basis.
UAL's first-quarter 2026 adjusted earnings per share (EPS) (excluding 95 cents from non-recurring items) of $1.19 surpassed the Zacks Consensus Estimate of $1.08 and increased 30.8% on a year-over-year basis. The reported figure lies within the guided range of $1.00-$1.50.
Operating revenues of $14.6 billion outpaced the Zacks Consensus Estimate of $14.3 billion and increased 10.5% year over year. Passenger revenues (which accounted for 90.1% of the top line) increased 11% year over year to $13.1 billion. UAL flights transported 42,486 passengers in the first quarter, up 4.1% year over year.
Cargo revenues fell 1.6% year over year to $422 million. Revenues from other sources rose 10.5% year over year to $1.02 billion.
J.B. Hunt Transport Services (JBHT - Free Report) posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, a 2.8% surprise.
Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.
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Canadian Pacific Q1 Earnings & Revenues Miss Estimates, Improve Y/Y
Key Takeaways
Canadian Pacific Kansas City(CP - Free Report) reported unimpressive first-quarter 2026 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
Quarterly earnings (excluding 7 cents from non-recurring items) of 76 cents per share missed the Zacks Consensus Estimate of 78 cents. The bottom line improved 2.7% on a year-over-year basis. Operating revenues of $2.69 billion lagged the Zacks Consensus Estimate of $2.71 billion. However, the top line improved 2.1% on a year-over-year basis.
In the reported quarter, total Freight revenues per revenue ton miles fell 4% year over year. Total Freight revenues per carload declined 1% year over year.
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
On a reported basis, operating income decreased 4.5% year over year. Total operating expenses fell 1.4% year over year.
CP’s Segmental Highlights
Freight revenues, which accounted for 98% of the top line, decreased 3% year over year. CP’s Freight segment contains Grain (up 11%), Coal (down 12%), Potash (down 4%), Fertilizers and Sulphur (down 2%), Metals, minerals and consumer products (down 2%), Automotive (down 6%) and Intermodal (down 3%). Meanwhile, Energy, chemicals and plastics and Forest products fell 8% and 17% year over year, respectively.
Other revenues increased 7% year over year in the first quarter of 2026.
CP’s Liquidity
CP exited the first quarter with cash and cash equivalents of C$409 million compared with C$184 million at the prior-quarter end. Long-term debt amounted to C$21.88 billion compared with C$19.94 billion at the prior-quarter end.
CP’s Outlook
Canadian Pacific expects 2026 core adjusted earnings per share to grow in the low double-digits from the 2025 actuals to C$4.61 per share.
The company expects 2026 RTMs to increase in the mid-single digits from the 2025 actuals.
Management expects capital expenditures to be C$2.65 billion for the full year. The core adjusted effective tax rate for 2026 is expected to be 24.75%.
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.
Q1 Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis due to high labor costs. Adjusted revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis.
United Airlines Holdings, Inc. (UAL - Free Report) reported solid first-quarter 2026 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate as well as improved on a year-over-year basis.
UAL's first-quarter 2026 adjusted earnings per share (EPS) (excluding 95 cents from non-recurring items) of $1.19 surpassed the Zacks Consensus Estimate of $1.08 and increased 30.8% on a year-over-year basis. The reported figure lies within the guided range of $1.00-$1.50.
Operating revenues of $14.6 billion outpaced the Zacks Consensus Estimate of $14.3 billion and increased 10.5% year over year. Passenger revenues (which accounted for 90.1% of the top line) increased 11% year over year to $13.1 billion. UAL flights transported 42,486 passengers in the first quarter, up 4.1% year over year.
Cargo revenues fell 1.6% year over year to $422 million. Revenues from other sources rose 10.5% year over year to $1.02 billion.
J.B. Hunt Transport Services (JBHT - Free Report) posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, a 2.8% surprise.
Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.