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What's in Store for Canadian Pacific (CP) in Q1 Earnings?
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Canadian Pacific Railway Limited (CP - Free Report) is scheduled to report first-quarter 2020 results on Apr 21, after market close.
The Zacks Consensus Estimate for first-quarter 2020 earnings has been revised upward by 2.9% in the past 60 days.
Let’s discuss the factors that might have influenced the company’s performance in the quarter to be reported.
The company’s first-quarter top line is likely to have benefited from impressive freight revenues. Both total freight revenues per revenue ton-miles (RTMs) and total freight revenues per carload is expected to have been impressive in the to-be-reported quarter.
Canadian Pacific Railway Limited Price and EPS Surprise
The company’s acquisition of Central Maine & Quebec Railway (CMQ), completed in December 2019, is likely to have had a positive impact on the top line for the March- end quarter and boosted its product portfolio.
Consistent improvement in operating ratio (operating expenses as a percentage of revenues) is expected to have aided the bottom line. Notably, lower value of this key metric bodes well. However, supply-chain disruptions due to the coronavirus pandemic are likely to have affected the company’s first-quarter performance.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Canadian Pacific in this earnings season. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Canadian Pacific has an Earnings ESP of +0.97% as the Most Accurate Estimate is pegged at $2.86, higher than the Zacks Consensus Estimate of $2.84. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Canadian Pacific carries a Zacks Rank #4 (Sell), currently.
Highlights of Q4 Earnings
In the last reported quarter, Canadian Pacific’s earnings (excluding 4 cents from non-recurring items) of $3.61 per share surpassed the Zacks Consensus Estimate by 6 cents. Moreover, the bottom line increased 5% year over year. Quarterly revenues of $1,567.6 million also beat the consensus mark of $1,551.5 million and inched up 3% year over year.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings this time around.
Covenant Transportation Group, Inc. has an Earnings ESP of +10.00% and currently holds a Zacks Rank of 3.
Trinity Industries, Inc. (TRN - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank of 3.
Golar LNG Limited (GLNG - Free Report) has an Earnings ESP of +1.100% and currently carries a Zacks Rank of 3.
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What's in Store for Canadian Pacific (CP) in Q1 Earnings?
Canadian Pacific Railway Limited (CP - Free Report) is scheduled to report first-quarter 2020 results on Apr 21, after market close.
The Zacks Consensus Estimate for first-quarter 2020 earnings has been revised upward by 2.9% in the past 60 days.
Let’s discuss the factors that might have influenced the company’s performance in the quarter to be reported.
The company’s first-quarter top line is likely to have benefited from impressive freight revenues. Both total freight revenues per revenue ton-miles (RTMs) and total freight revenues per carload is expected to have been impressive in the to-be-reported quarter.
Canadian Pacific Railway Limited Price and EPS Surprise
Canadian Pacific Railway Limited price-eps-surprise | Canadian Pacific Railway Limited Quote
The company’s acquisition of Central Maine & Quebec Railway (CMQ), completed in December 2019, is likely to have had a positive impact on the top line for the March- end quarter and boosted its product portfolio.
Consistent improvement in operating ratio (operating expenses as a percentage of revenues) is expected to have aided the bottom line. Notably, lower value of this key metric bodes well. However, supply-chain disruptions due to the coronavirus pandemic are likely to have affected the company’s first-quarter performance.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Canadian Pacific in this earnings season. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Canadian Pacific has an Earnings ESP of +0.97% as the Most Accurate Estimate is pegged at $2.86, higher than the Zacks Consensus Estimate of $2.84. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Canadian Pacific carries a Zacks Rank #4 (Sell), currently.
Highlights of Q4 Earnings
In the last reported quarter, Canadian Pacific’s earnings (excluding 4 cents from non-recurring items) of $3.61 per share surpassed the Zacks Consensus Estimate by 6 cents. Moreover, the bottom line increased 5% year over year. Quarterly revenues of $1,567.6 million also beat the consensus mark of $1,551.5 million and inched up 3% year over year.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings this time around.
Covenant Transportation Group, Inc. has an Earnings ESP of +10.00% and currently holds a Zacks Rank of 3.
Trinity Industries, Inc. (TRN - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank of 3.
Golar LNG Limited (GLNG - Free Report) has an Earnings ESP of +1.100% and currently carries a Zacks Rank of 3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>