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Canadian Pacific KC (CP) Q2 Earnings & Sales Beat Estimates
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Canadian Pacific Kansas City’s (CP - Free Report) second-quarter 2024 earnings (excluding 6 cents from non-recurring items) of 77 cents per share beat the Zacks Consensus Estimate of 74 cents. The bottom line improved 24.2% on a year-over-year basis. Results were aided by strong operational efficiency.
Operating revenues of $2.63 billion marginally beat the Zacks Consensus Estimate of $2.60 billion. The top line improved by 11.4% on a year-over-year basis due to synergies and favorable operating and safety performance.
Freight revenues, accounting for 98.1% of the top line, increased 14% to $3.53 billion. The actual figure surpassed our estimate of $3.38 billion.CP’s Freight segment contains Grain (up 24%), Coal (up 7.8%), Potash (up 25%), Fertilizers and Sulphur (up 15.7%), Forest products (up 8.5%), Energy, chemicals and plastics (up 21%), Metals, minerals and consumer products (up 5.5%), Automotive (up 39.3%) and Intermodal (down 3.5%).
Other revenues decreased 4% to $69 million in the second quarter of 2024.
In the reported quarter, total Freight revenues per revenue ton miles increased 4% year over year. Total Freight revenues per carload increased 12% year over year.
Canadian Pacific Kansas City Limited Price, Consensus and EPS Surprise
On a reported basis, the operating income was up 34.2%. Total operating expenses surged 5% year over year, primarily due to escalated labor and fuel costs. The reported operating ratio (operating expenses as a percentage of revenues) deteriorated 550 basis points to 64.8% from 70.3% in the year-ago quarter due to high costs. A lower value of the metric is more desirable.
CP exited the second quarter with cash and cash equivalents of C$557 million compared with C$464 million in the fourth quarter of 2023. Long-term debt amounted to C$18.96 billion compared with C$19.35 billion at the end of the fourth quarter of 2023.
Outlook
Earnings per share (core adjusted combined) for the current year are expected to grow in double digits from the 2023 actuals. Management expects capital expenditures to be C$2.75 billion for full-year 2024. The company targets capital expenditures of approximately $2.6 billion to $2.8 billion per year across the combined network for the 2024–2028 period.
Delta Air Lines’ (DAL - Free Report) second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share missed the Zacks Consensus Estimate of $2.37 and decreased 12% year over year.
Revenues of $16.7billion surpassed the Zacks Consensus Estimate of $16.3 billion and increased 7% on a year-over-year basis. Passenger revenues, accounting for 83% of the total revenues, improved 5% year over year.
United Airlines (UAL - Free Report) reported second-quarter 2024 earnings (excluding 18 cents from non-recurring items) of $4.14 per share, which surpassed the Zacks Consensus Estimate of $3.97 per share. However, the bottom line decreased 17.69% year over year.
Operating revenues of $15 billion missed the Zacks Consensus Estimate of $15.13 billion. However, the top line increased 5.7% year over year due to upbeat air travel demand. Cargo revenues rose by 14.4% year over year to $414 million. Revenues from other sources jumped 9.6% year over year to $892 million.
J.B. Hunt Transport Services’ (JBHT - Free Report) second-quarter 2024 earnings per share of $1.32 missed the Zacks Consensus Estimate of $1.51 and declined 27.1% year over year.
Total operating revenues of $2.93 billion lagged the Zacks Consensus Estimate of $3.04 billion and fell 6.5% year over year. Total operating revenues, excluding fuel surcharge revenues, decreased approximately 6% year over year.
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Canadian Pacific KC (CP) Q2 Earnings & Sales Beat Estimates
Canadian Pacific Kansas City’s (CP - Free Report) second-quarter 2024 earnings (excluding 6 cents from non-recurring items) of 77 cents per share beat the Zacks Consensus Estimate of 74 cents. The bottom line improved 24.2% on a year-over-year basis. Results were aided by strong operational efficiency.
Operating revenues of $2.63 billion marginally beat the Zacks Consensus Estimate of $2.60 billion. The top line improved by 11.4% on a year-over-year basis due to synergies and favorable operating and safety performance.
Freight revenues, accounting for 98.1% of the top line, increased 14% to $3.53 billion. The actual figure surpassed our estimate of $3.38 billion.CP’s Freight segment contains Grain (up 24%), Coal (up 7.8%), Potash (up 25%), Fertilizers and Sulphur (up 15.7%), Forest products (up 8.5%), Energy, chemicals and plastics (up 21%), Metals, minerals and consumer products (up 5.5%), Automotive (up 39.3%) and Intermodal (down 3.5%).
Other revenues decreased 4% to $69 million in the second quarter of 2024.
In the reported quarter, total Freight revenues per revenue ton miles increased 4% year over year. Total Freight revenues per carload increased 12% year over year.
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
On a reported basis, the operating income was up 34.2%. Total operating expenses surged 5% year over year, primarily due to escalated labor and fuel costs. The reported operating ratio (operating expenses as a percentage of revenues) deteriorated 550 basis points to 64.8% from 70.3% in the year-ago quarter due to high costs. A lower value of the metric is more desirable.
CP exited the second quarter with cash and cash equivalents of C$557 million compared with C$464 million in the fourth quarter of 2023. Long-term debt amounted to C$18.96 billion compared with C$19.35 billion at the end of the fourth quarter of 2023.
Outlook
Earnings per share (core adjusted combined) for the current year are expected to grow in double digits from the 2023 actuals. Management expects capital expenditures to be C$2.75 billion for full-year 2024. The company targets capital expenditures of approximately $2.6 billion to $2.8 billion per year across the combined network for the 2024–2028 period.
Currently, Canadian Pacific KC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q2 Performances of Other Transportation Companies
Delta Air Lines’ (DAL - Free Report) second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share missed the Zacks Consensus Estimate of $2.37 and decreased 12% year over year.
Revenues of $16.7billion surpassed the Zacks Consensus Estimate of $16.3 billion and increased 7% on a year-over-year basis. Passenger revenues, accounting for 83% of the total revenues, improved 5% year over year.
United Airlines (UAL - Free Report) reported second-quarter 2024 earnings (excluding 18 cents from non-recurring items) of $4.14 per share, which surpassed the Zacks Consensus Estimate of $3.97 per share. However, the bottom line decreased 17.69% year over year.
Operating revenues of $15 billion missed the Zacks Consensus Estimate of $15.13 billion. However, the top line increased 5.7% year over year due to upbeat air travel demand. Cargo revenues rose by 14.4% year over year to $414 million. Revenues from other sources jumped 9.6% year over year to $892 million.
J.B. Hunt Transport Services’ (JBHT - Free Report) second-quarter 2024 earnings per share of $1.32 missed the Zacks Consensus Estimate of $1.51 and declined 27.1% year over year.
Total operating revenues of $2.93 billion lagged the Zacks Consensus Estimate of $3.04 billion and fell 6.5% year over year. Total operating revenues, excluding fuel surcharge revenues, decreased approximately 6% year over year.