Canadian Pacific Railway Limited (CP) Canadian Pacific serves the principal business centers of Canada from Montreal to Vancouver, as well as the U.S. Northeast and Midwest regions. The company has extended its network reach by establishing alliances and agreements with other Class I railways in North America, which allows it to provide services and access markets across North America beyond its own rail network. Freight transport forms the main source of revenue for the company.
Canadian Pacific Railway is set to gain from strong the Industrial and Automotive segments. Moreover, solid Merchandize segment and increased Canadian coal exports may boosts the company’s business in the upcoming quarters. However, declining crude oil prices may force the oil producers to curtail production, thus affecting the company’s profitability in the upcoming quarters.
Currently, Canadian Pacific Railway has a Zacks Rank #3 (Hold), but that could definitely change following Canadian Pacific Railway’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Canadian Pacific Railway misses on earnings. Our consensus earnings estimate called for EPS of $2.28/share, and the company reported EPS of $2.20 instead. Investors should note that these figures take out stock option expenses.
Revenue: Canadian Pacific Railway reported revenues of $1,550 million. This outpaced our consensus estimate of $1,512 million.
Key Stats to Note: Canadian Pacific Railway reported record operating ratio for the reported quarter. Moreover, it also witnessed massive growth in operating income during the quarter.
Stock Price: Canadian Pacific Railway shares were up almost 0.9%. Clearly, the initial reaction to the release is negative.
Check back later for our full write up on this Canadian Pacific Railway earnings report later!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the
Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment