Back to top
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Canadian Pacific (CP) Q3 Earnings Beat Estimates, Decrease Y/Y
Canadian Pacific Kansas City Limited (CP - Free Report) reported third-quarter 2023 earnings (excluding 6 cents from non-recurring items) per share of 69 cents (C$0.84), which beat the Zacks Consensus Estimate of 68 cents. Nonetheless, the bottom line decreased 10.4% year over year. However, quarterly revenues of $2,489.1 million (C$3,339 million) surpassed the Zacks Consensus Estimate of $2,487.4 million and improved 40.4% year over year.
Freight revenues, contributing 97.8% to the top line, rose 44.3% on a year-over-year basis. We suggested the metric to jump 49.2% from third-quarter 2022 actuals. CP’s freight segment contains Grain (up 53.5%), Coal (up 46.8%), Potash (down 21.8%), Forest products (up 82.6%), Energy, chemicals and plastics (up 78.6%), Metals, minerals and consumer products (up 84.9%), Automotive (up 139.6%), Fertilizers and Sulphur (up 12.3%), and Intermodal (up 1.6%).
In the reported quarter, total Freight revenues per revenue ton-miles gained 10% year over year. Total Freight revenues per carload declined 7% from a year ago.
On a reported basis, operating income was up 25.2%. Total operating expenses increased 58% year over year. Operating ratio (operating expenses as a percentage of revenues) improved 540 basis points to 64.9% from 59.5% in the year-ago quarter.
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
CP exited the third quarter with cash and cash equivalents of C$294 million compared with C$451 million in fourth-quarter 2022. Long-term debt amounted to C$21,762 million compared with C$18,141 million at the end of fourth-quarter 2022.
Management expects adjusted earnings for 2023 to register flat to slightly positive year-over-year growth from 2022.
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.
Q3 Performance of Other Players
United Airlines (UAL - Free Report) reported third-quarter 2023 earnings per share (excluding 23 cents from non-recurring items) of $3.65, which outpaced the Zacks Consensus Estimate of $3.40 and improved 29.9% year over year.
Operating revenues of $14,484 million outpaced the Zacks Consensus Estimate of $14,441.8 million. The top line increased 12.5% year over year due to upbeat air-travel demand.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) third-quarter 2023 earnings per share of $1.80 lagged the Zacks Consensus Estimate of $1.85 and declined 30% year over year.
Total operating revenues of $3,163.8 million also lagged the Zacks Consensus Estimate of $3,224 million and tumbled 18% year over year.