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Will Canadian National's (CNI) Q1 Earnings be a Let Down?
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Canadian National Railway Company (CNI - Free Report) is scheduled to report first-quarter 2020 results on Apr 27, after market close.
The Zacks Consensus Estimate for first-quarter 2020 earnings has been revised downward by 10.5% in the past 60 days.
Let’s discuss the factors that might have influenced the company’s performance in the quarter to be reported.
Canadian National’s overall performance is likely to have been affected by declining freight revenues. Lacklustre freight demand caused by the COVID-19 pandemic is likely to have made a negative impact on freight revenues in the first quarter.
Moreover, supply-chain disruptions due to the coronavirus pandemic are expected to have exerted pressure on the company’s first-quarter performance. Due to declining shipments, overall volumes are likely to have suffered in the quarter to be reported. Also, revenue ton miles (RTMs) might have been affected by low freight revenues.
Canadian National Railway Company Price and EPS Surprise
However, low fuel costs in the January-March period might have led to a decline in operating expenses in the to-be-reported quarter. This in turn might have supported the bottom line.
What Does the Zacks Model Say?
Our proven Zacks model does not conclusively predict an earnings beat for Canadian National in the first quarter of 2020. 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 National has an Earnings ESP of -1.30% as the Most Accurate Estimate is pegged at 76 cents, lower than the Zacks Consensus Estimate of 77 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Canadian National carries a Zacks Rank #4(Sell), currently.
Highlights of Q4 Earnings
In the last reported quarter, Canadian National’s earnings (excluding 3 cents from non-recurring items) of 95 cents per share surpassed the Zacks Consensus Estimate by 4 cents. However, the bottom line declined 15.9% year over year. Quarterly revenues of $2,715.5 million also beat the consensus mark of $2,690 million but declined 5.8% on a year-over-year basis.
Stocks to Consider
Here are somestocks 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 first-quarter 2020 earnings.
Covenant Transportation Group, Inc. has an Earnings ESP of +10.00% and a Zacks Rank of 3.
Trinity Industries, Inc. (TRN - Free Report) has an Earnings ESP of +7.14% and currently has a Zacks Rank of 3.
Golar LNG Limited (GLNG - Free Report) has an Earnings ESP of +1,100% and currently holds a Zacks Rank of 3.
Today's Best Stocks from Zacks
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Will Canadian National's (CNI) Q1 Earnings be a Let Down?
Canadian National Railway Company (CNI - Free Report) is scheduled to report first-quarter 2020 results on Apr 27, after market close.
The Zacks Consensus Estimate for first-quarter 2020 earnings has been revised downward by 10.5% in the past 60 days.
Let’s discuss the factors that might have influenced the company’s performance in the quarter to be reported.
Canadian National’s overall performance is likely to have been affected by declining freight revenues. Lacklustre freight demand caused by the COVID-19 pandemic is likely to have made a negative impact on freight revenues in the first quarter.
Moreover, supply-chain disruptions due to the coronavirus pandemic are expected to have exerted pressure on the company’s first-quarter performance. Due to declining shipments, overall volumes are likely to have suffered in the quarter to be reported. Also, revenue ton miles (RTMs) might have been affected by low freight revenues.
Canadian National Railway Company Price and EPS Surprise
Canadian National Railway Company price-eps-surprise | Canadian National Railway Company Quote
However, low fuel costs in the January-March period might have led to a decline in operating expenses in the to-be-reported quarter. This in turn might have supported the bottom line.
What Does the Zacks Model Say?
Our proven Zacks model does not conclusively predict an earnings beat for Canadian National in the first quarter of 2020. 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 National has an Earnings ESP of -1.30% as the Most Accurate Estimate is pegged at 76 cents, lower than the Zacks Consensus Estimate of 77 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Canadian National carries a Zacks Rank #4(Sell), currently.
Highlights of Q4 Earnings
In the last reported quarter, Canadian National’s earnings (excluding 3 cents from non-recurring items) of 95 cents per share surpassed the Zacks Consensus Estimate by 4 cents. However, the bottom line declined 15.9% year over year. Quarterly revenues of $2,715.5 million also beat the consensus mark of $2,690 million but declined 5.8% on a year-over-year basis.
Stocks to Consider
Here are somestocks 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 first-quarter 2020 earnings.
Covenant Transportation Group, Inc. has an Earnings ESP of +10.00% and a Zacks Rank of 3.
Trinity Industries, Inc. (TRN - Free Report) has an Earnings ESP of +7.14% and currently has a Zacks Rank of 3.
Golar LNG Limited (GLNG - Free Report) has an Earnings ESP of +1,100% and currently holds a Zacks Rank of 3.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>