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CP's Q4 Earnings Coming Up: What's in the Offing for the Stock?
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Canadian Pacific Kansas City Limited (CP - Free Report) is scheduled to report fourth-quarter 2024 results on Jan. 29, after market close.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The Zacks Consensus Estimate for CP’s fourth-quarter earnings has been revised downward by 4.4% in the past 60 days to 88 cents per share. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $2.74 billion, which indicates a fall of 1.1% compared with the fourth-quarter 2023 actuals.
Image Source: Zacks Investment Research
Canadian Pacific has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missing twice. The average beat is 1.5%.
Canadian Pacific Kansas City Limited Price and EPS Surprise
Factors Likely to Have Influenced CP’s Q4 Performance
The sluggish freight demand scenario is likely to have hurt the top-line performance in the to-be-reported quarter. Our estimate for freight revenues is pegged at $3.65 billion, which indicates a fall of 1.3% compared with the fourth-quarter 2023 actuals.
Despite the declining fuel costs, which could provide some relief, bottom-line growth remains uncertain and may struggle to meet expectations in the to-be-reported quarter.We expect the average fuel price per gallon to decrease 13.1% year over year to $3.19 per gallon in the December-end quarter of 2024.
Apart from low fuel prices, Canadian Pacific's proactive cost-cutting initiatives and the resultant increased operational efficiency are expected to be reflected in fourth-quarter 2024 bottom-line results.
What Our Model Says About CP
Our proven model does not conclusively predict an earnings beat for Canadian Pacific 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. However, that’s not the case here.
CP has an Earnings ESP of -3.74% 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.
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 fourth-quarter 2024 earnings.
AAL has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate thrice in the preceding four quarters and missing once. The average miss is 124.4%.
JetBlue Airways (JBLU - Free Report) has an Earnings ESP of +5.02% and a Zacks Rank #3 at present. JBLU is slated to release fourth-quarter 2024 results on Jan. 28.
JBLU has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters. The average beat is 62.8%.
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CP's Q4 Earnings Coming Up: What's in the Offing for the Stock?
Canadian Pacific Kansas City Limited (CP - Free Report) is scheduled to report fourth-quarter 2024 results on Jan. 29, after market close.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The Zacks Consensus Estimate for CP’s fourth-quarter earnings has been revised downward by 4.4% in the past 60 days to 88 cents per share. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $2.74 billion, which indicates a fall of 1.1% compared with the fourth-quarter 2023 actuals.
Image Source: Zacks Investment Research
Canadian Pacific has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missing twice. The average beat is 1.5%.
Canadian Pacific Kansas City Limited Price and EPS Surprise
Canadian Pacific Kansas City Limited price-eps-surprise | Canadian Pacific Kansas City Limited Quote
Factors Likely to Have Influenced CP’s Q4 Performance
The sluggish freight demand scenario is likely to have hurt the top-line performance in the to-be-reported quarter. Our estimate for freight revenues is pegged at $3.65 billion, which indicates a fall of 1.3% compared with the fourth-quarter 2023 actuals.
Despite the declining fuel costs, which could provide some relief, bottom-line growth remains uncertain and may struggle to meet expectations in the to-be-reported quarter.We expect the average fuel price per gallon to decrease 13.1% year over year to $3.19 per gallon in the December-end quarter of 2024.
Apart from low fuel prices, Canadian Pacific's proactive cost-cutting initiatives and the resultant increased operational efficiency are expected to be reflected in fourth-quarter 2024 bottom-line results.
What Our Model Says About CP
Our proven model does not conclusively predict an earnings beat for Canadian Pacific 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. However, that’s not the case here.
CP has an Earnings ESP of -3.74% 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.
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 fourth-quarter 2024 earnings.
American Airlines (AAL - Free Report) has an Earnings ESP of +4.15% and sports a Zacks Rank #1 at present. AAL is set to release fourth-quarter 2024 results on Jan. 23.You can see the complete list of today’s Zacks #1 Rank stocks here.
AAL has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate thrice in the preceding four quarters and missing once. The average miss is 124.4%.
JetBlue Airways (JBLU - Free Report) has an Earnings ESP of +5.02% and a Zacks Rank #3 at present. JBLU is slated to release fourth-quarter 2024 results on Jan. 28.
JBLU has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters. The average beat is 62.8%.