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What's in Store for Canadian Pacific KC (CP) in Q2 Earnings?
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Canadian Pacific Kansas City Limited (CP - Free Report) is scheduled to report second-quarter 2024 results on Jul 30 after market close.
CP has a mixed earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missing twice. The average miss is 1.32%.
Canadian Pacific Kansas City Limited Price and EPS Surprise
Rising operating expenses are adversely impacting the company’s bottom line. This surge in operating expenses is primarily driven by the increase in labor costs and fuel costs, thereby hindering Canadian Pacific’s performance in the to-be-reported quarter.
The Zacks Consensus Estimate for CP’s soon-to-be-reported quarter’s earnings has been revised downward by 1.3% in the past 90 days to 74 cents per share. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $3.5 billion, which indicates a decline of 1.7% from the first-quarter 2024 actuals.
Our estimate for freight revenues is pegged at $3.4 billion, which is 1.5% down compared with the first-quarter 2024 actuals. Meanwhile, estimates for other revenues are pegged at $83 million, which implies a 10.7% decrease from the first-quarter 2024 reported figure.
On a brighter note, despite the freight-related weakness, some segments, like Potash, are expected to perform well. Freight revenues from the Potash segment are expected to increase 14.6% in the second quarter of 2024 from the first-quarter 2024 actuals.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Canadian Pacific Kansas City this time. 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.
CP has an Earnings ESP of -0.20% 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 Pacific Kansas City Limited reported first-quarter 2024 earnings (excluding 7 cents from non-recurring items) of 69 cents per share, which missed the Zacks Consensus Estimate of 70 cents. However, the bottom line increased 9.5% year over year.
Meanwhile, quarterly revenues of $2.61 billion surpassed the Zacks Consensus Estimate of $2.59 billion and improved 0.8% year over year. Freight revenues, contributing 97.4% to the top line, rose 54.6% on a year-over-year basis.
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.
JetBlue Airways (JBLU - Free Report) has an Earnings ESP of +22.96% and a Zacks Rank #3.The company is scheduled to report second-quarter 2024 earnings on Jul 30.
JBLU has surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once. The average beat is 4.77%.
EXPD has a discouraging earnings surprise history, having surpassed the Zacks Consensus Estimate only once in the preceding four quarters and missing thrice, the average miss being 3.44%.
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What's in Store for Canadian Pacific KC (CP) in Q2 Earnings?
Canadian Pacific Kansas City Limited (CP - Free Report) is scheduled to report second-quarter 2024 results on Jul 30 after market close.
CP has a mixed earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missing twice. The average miss is 1.32%.
Canadian Pacific Kansas City Limited Price and EPS Surprise
Canadian Pacific Kansas City Limited price-eps-surprise | Canadian Pacific Kansas City Limited Quote
Rising operating expenses are adversely impacting the company’s bottom line. This surge in operating expenses is primarily driven by the increase in labor costs and fuel costs, thereby hindering Canadian Pacific’s performance in the to-be-reported quarter.
The Zacks Consensus Estimate for CP’s soon-to-be-reported quarter’s earnings has been revised downward by 1.3% in the past 90 days to 74 cents per share. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $3.5 billion, which indicates a decline of 1.7% from the first-quarter 2024 actuals.
Our estimate for freight revenues is pegged at $3.4 billion, which is 1.5% down compared with the first-quarter 2024 actuals. Meanwhile, estimates for other revenues are pegged at $83 million, which implies a 10.7% decrease from the first-quarter 2024 reported figure.
On a brighter note, despite the freight-related weakness, some segments, like Potash, are expected to perform well. Freight revenues from the Potash segment are expected to increase 14.6% in the second quarter of 2024 from the first-quarter 2024 actuals.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Canadian Pacific Kansas City this time. 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.
CP has an Earnings ESP of -0.20% 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 Pacific Kansas City Limited reported first-quarter 2024 earnings (excluding 7 cents from non-recurring items) of 69 cents per share, which missed the Zacks Consensus Estimate of 70 cents. However, the bottom line increased 9.5% year over year.
Meanwhile, quarterly revenues of $2.61 billion surpassed the Zacks Consensus Estimate of $2.59 billion and improved 0.8% year over year. Freight revenues, contributing 97.4% to the top line, rose 54.6% on a year-over-year basis.
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.
JetBlue Airways (JBLU - Free Report) has an Earnings ESP of +22.96% and a Zacks Rank #3.The company is scheduled to report second-quarter 2024 earnings on Jul 30.
JBLU has surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once. The average beat is 4.77%.
Expeditors International of Washington (EXPD - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. EXPD is scheduled to report second-quarter 2024 earnings on Aug 6.
EXPD has a discouraging earnings surprise history, having surpassed the Zacks Consensus Estimate only once in the preceding four quarters and missing thrice, the average miss being 3.44%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.