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Canadian National has a discouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missing twice. The average miss is 1.14%.
Canadian National Railway Company Price and EPS Surprise
The Zacks Consensus Estimate for CNI’s soon-to-be reported quarter’s earnings has been revised downward by 1.39% in the past 60 days to $1.42 per share. The Zacks Consensus Estimate for revenues is pegged at $3.23 billion, which indicates growth of 6.93% from the year-ago levels.
CNI’s second-quarter performance is likely to have been hurt by weak freight revenues due to excess freight capacity compared with freight volumes. Supply-chain disruptions, network fluidity challenges and a weak intermodal scenario are also likely to have hurt Canadian National's performance.
Our estimate for freight revenues is pegged at $4.1 billion, which indicates a 0.5% decrease compared with the first-quarter 2024 actuals. Revenues in the Petroleum and Chemicals, Metals & Minerals and Forest Products segments are expected to fall by 6%, 3.5% and 1.7%, respectively, from the first-quarter 2024 actuals.
To mitigate the revenue decline from the freight downturn, Canadian National focuses on cost-cutting measures to improve its bottom line in the to-be-reported period. Our June quarter estimate for adjusted operating expenses indicates a 4.2% decline from the first-quarter 2024 actuals.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Canadian Nationalthis time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
CNI has an Earnings ESP of -0.68% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Highlights of Q1
Canadian National reported first-quarter 2024 earnings of $1.28 per share (C$1.72), which surpassed the Zacks Consensus Estimate of $1.27. However, the bottom line declined 5.19% year over year.
Revenues for the first quarter of 2024 were $3.15 billion (C$4.25 billion), which missed the Zacks Consensus Estimate of $3.16 billion. This reflects a decrease of 1.19%. The decline was mainly due to lower freight revenue per RTM, while volumes remained flat.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors might want to consider as our model shows that these have the right combination of elements to beat second-quarter 2024 earnings.
Allegiant (ALGT - Free Report) has an Earnings ESP of +3.40% and a Zacks Rank #3.The company is scheduled to report second-quarter 2024 earnings on Jul 31.
ALGT surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once. The average beat is 29.3%.
KEX has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 10.3%.
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What's in Store for Canadian National (CNI) in Q2 Earnings?
Canadian National Railway (CNI - Free Report) is scheduled to report second-quarter 2024 results on Jul 23 after market close.
Canadian National has a discouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missing twice. The average miss is 1.14%.
Canadian National Railway Company Price and EPS Surprise
Canadian National Railway Company price-eps-surprise | Canadian National Railway Company Quote
The Zacks Consensus Estimate for CNI’s soon-to-be reported quarter’s earnings has been revised downward by 1.39% in the past 60 days to $1.42 per share. The Zacks Consensus Estimate for revenues is pegged at $3.23 billion, which indicates growth of 6.93% from the year-ago levels.
CNI’s second-quarter performance is likely to have been hurt by weak freight revenues due to excess freight capacity compared with freight volumes. Supply-chain disruptions, network fluidity challenges and a weak intermodal scenario are also likely to have hurt Canadian National's performance.
Our estimate for freight revenues is pegged at $4.1 billion, which indicates a 0.5% decrease compared with the first-quarter 2024 actuals. Revenues in the Petroleum and Chemicals, Metals & Minerals and Forest Products segments are expected to fall by 6%, 3.5% and 1.7%, respectively, from the first-quarter 2024 actuals.
To mitigate the revenue decline from the freight downturn, Canadian National focuses on cost-cutting measures to improve its bottom line in the to-be-reported period. Our June quarter estimate for adjusted operating expenses indicates a 4.2% decline from the first-quarter 2024 actuals.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Canadian Nationalthis time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
CNI has an Earnings ESP of -0.68% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Highlights of Q1
Canadian National reported first-quarter 2024 earnings of $1.28 per share (C$1.72), which surpassed the Zacks Consensus Estimate of $1.27. However, the bottom line declined 5.19% year over year.
Revenues for the first quarter of 2024 were $3.15 billion (C$4.25 billion), which missed the Zacks Consensus Estimate of $3.16 billion. This reflects a decrease of 1.19%. The decline was mainly due to lower freight revenue per RTM, while volumes remained flat.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors might want to consider as our model shows that these have the right combination of elements to beat second-quarter 2024 earnings.
Allegiant (ALGT - Free Report) has an Earnings ESP of +3.40% and a Zacks Rank #3.The company is scheduled to report second-quarter 2024 earnings on Jul 31.
ALGT surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once. The average beat is 29.3%.
Kirby (KEX - Free Report) has an Earnings ESP of +7.58% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. KEX is scheduled to report second-quarter 2024 earnings on Aug 1.
KEX has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 10.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.