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Canadian Pacific (CP) Beats Q2 Earnings & Revenue Estimates
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Canadian Pacific Railway Limited (CP - Free Report) posted better-than-expected earnings and revenues in second-quarter 2018, courtesy of higher shipments of key commodities.
The company’s earnings (excluding 9 cents from non-recurring items) of $2.45 per share (C$3.16) surpassed the Zacks Consensus Estimate of $2.40. Moreover, the bottom line improved 18.9% from the prior-year quarter.
Quarterly revenues increased 11.1% year over year to $1356.2 million (C$1.75 billion) and beat the Zacks Consensus Estimate of $1333.8 million. Freight revenues improved 7% year over year and accounted for 97.7% of the top line.
The impressive earnings results raised investors’ optimism on the stock, which inched up 1.1% in after-hour trading on Jul 18.
Canadian Pacific Railway Limited Price, Consensus and EPS Surprise
Notably, the company’s freight segment consists of Grain (up 2%), Coal (down 1%), Potash (up 6%), Fertilizers and sulfur (down 21%), Forest products (up 1%), Energy, chemicals and plastics (up 29%), Metals, minerals and consumer products (up 7%), Automotive (up 15%) and Intermodal (up 7%). In the reported quarter, total freight revenue per revenue ton-miles (RTMs) were up 2% year over year. Also, freight revenue per car load improved 5% from the year-ago quarter’s tally.
Operating income (on an adjusted basis) increased 2.6% in the quarter under review. Operating ratio (operating expenses, as a percentage of revenues, on an adjusted basis) came in at 64.2% compared with 62.8% in the prior-year quarter. Operating expenses rose 9% year over year.
Liquidity
This Zacks Rank #3 (Hold) company exited the quarter with cash and cash equivalents of C$51 million compared with C$338 million at the end of 2017. Long-term debt amounted to C$7936 million compared with C$7413 million in December 2017. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Canadian Pacific expects to maintain the impressive performance in the remaining quarters of 2018. The company will hold Investor Day meet during the Oct 3-4, 2018 period.
Upcoming Releases
Investors interested in the Zacks Rail industry are awaiting second-quarter earnings reports from railroad companies like Canadian National Railway Company (CNI - Free Report) , Norfolk Southern Corporation (NSC - Free Report) and Genesee & Wyoming Inc. . Canadian National Railway Company will release results on Jul 24. Norfolk Southern and Genesee & Wyoming will announce the same on Jul 25 and Jul 27, respectively.
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It’s hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
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Canadian Pacific (CP) Beats Q2 Earnings & Revenue Estimates
Canadian Pacific Railway Limited (CP - Free Report) posted better-than-expected earnings and revenues in second-quarter 2018, courtesy of higher shipments of key commodities.
The company’s earnings (excluding 9 cents from non-recurring items) of $2.45 per share (C$3.16) surpassed the Zacks Consensus Estimate of $2.40. Moreover, the bottom line improved 18.9% from the prior-year quarter.
Quarterly revenues increased 11.1% year over year to $1356.2 million (C$1.75 billion) and beat the Zacks Consensus Estimate of $1333.8 million. Freight revenues improved 7% year over year and accounted for 97.7% of the top line.
The impressive earnings results raised investors’ optimism on the stock, which inched up 1.1% in after-hour trading on Jul 18.
Canadian Pacific Railway Limited Price, Consensus and EPS Surprise
Canadian Pacific Railway Limited Price, Consensus and EPS Surprise | Canadian Pacific Railway Limited Quote
Notably, the company’s freight segment consists of Grain (up 2%), Coal (down 1%), Potash (up 6%), Fertilizers and sulfur (down 21%), Forest products (up 1%), Energy, chemicals and plastics (up 29%), Metals, minerals and consumer products (up 7%), Automotive (up 15%) and Intermodal (up 7%). In the reported quarter, total freight revenue per revenue ton-miles (RTMs) were up 2% year over year. Also, freight revenue per car load improved 5% from the year-ago quarter’s tally.
Operating income (on an adjusted basis) increased 2.6% in the quarter under review. Operating ratio (operating expenses, as a percentage of revenues, on an adjusted basis) came in at 64.2% compared with 62.8% in the prior-year quarter. Operating expenses rose 9% year over year.
Liquidity
This Zacks Rank #3 (Hold) company exited the quarter with cash and cash equivalents of C$51 million compared with C$338 million at the end of 2017. Long-term debt amounted to C$7936 million compared with C$7413 million in December 2017. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Canadian Pacific expects to maintain the impressive performance in the remaining quarters of 2018. The company will hold Investor Day meet during the Oct 3-4, 2018 period.
Upcoming Releases
Investors interested in the Zacks Rail industry are awaiting second-quarter earnings reports from railroad companies like Canadian National Railway Company (CNI - Free Report) , Norfolk Southern Corporation (NSC - Free Report) and Genesee & Wyoming Inc. . Canadian National Railway Company will release results on Jul 24. Norfolk Southern and Genesee & Wyoming will announce the same on Jul 25 and Jul 27, respectively.
Today's Stocks from Zacks' Hottest Strategies
It’s hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>