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Canadian Pacific's (CP) Q2 Earnings Beat, Revenues Miss
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Railroad operator Canadian Pacific Railway Limited (CP - Free Report) reported better-than-expected earnings but lower-than-expected revenues in second-quarter 2017. The company’s earnings (on an adjusted basis) of $2.06 per share (C$2.77) beat the Zacks Consensus Estimate by a penny and also improved 29.6% from the year-ago figure.
Quarterly revenues increased 8.5% year over year to $1,221.1 million (C$1,643 million) but fell short of the Zacks Consensus Estimate of $1,235.9 million. Freight revenues, which improved 11% year over year on a foreign exchange adjusted basis, accounted for the bulk (97.3%) of the top line.
Freight segment consists of Grain (up 20%), Coal (up 11%), Potash (up 38%), Sulfur and Fertilizer (down 4%), Forest products (down 3%), Energy, Chemicals and Plastics (up 16%), Metals, Minerals and Consumer products (up 36%), Automotive (down 15%) and Intermodal (up 8%). Total freight revenues per revenue ton-miles (RTMs) decreased 1% on a foreign exchange adjusted basis in the reported quarter. Additionally, the foreign exchange adjusted increase in freight revenues per car load was 3%.
Operating income (on an adjusted basis) climbed 23.2% in the second quarter. Operating ratio (operating expenses as a percentage of revenues on an adjusted basis) came in at 58.7% compared with 62.0%, a year ago.
Canadian Pacific Railway Limited Price, Consensus and EPS Surprise
This Zacks Rank #2 (Buy) company exited the second quarter with cash and cash equivalents of C$238 million compared with C$164 million at the end of 2016. Long-term debt totaled C$7,660 million compared with C$8,659 million at the same time around. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the railroad space are keenly waiting for second-quarter earnings reports from key players like Canadian National Railway Company (CNI - Free Report) , Kansas City Southern and Norfolk Southern Corporation (NSC - Free Report) . While Canadian National is scheduled to report its second-quarter results on Jul 25, Kansas City Southern and Norfolk Southern will report on Jul 21 and Jul 26 respectively.
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Canadian Pacific's (CP) Q2 Earnings Beat, Revenues Miss
Railroad operator Canadian Pacific Railway Limited (CP - Free Report) reported better-than-expected earnings but lower-than-expected revenues in second-quarter 2017. The company’s earnings (on an adjusted basis) of $2.06 per share (C$2.77) beat the Zacks Consensus Estimate by a penny and also improved 29.6% from the year-ago figure.
Quarterly revenues increased 8.5% year over year to $1,221.1 million (C$1,643 million) but fell short of the Zacks Consensus Estimate of $1,235.9 million. Freight revenues, which improved 11% year over year on a foreign exchange adjusted basis, accounted for the bulk (97.3%) of the top line.
Freight segment consists of Grain (up 20%), Coal (up 11%), Potash (up 38%), Sulfur and Fertilizer (down 4%), Forest products (down 3%), Energy, Chemicals and Plastics (up 16%), Metals, Minerals and Consumer products (up 36%), Automotive (down 15%) and Intermodal (up 8%). Total freight revenues per revenue ton-miles (RTMs) decreased 1% on a foreign exchange adjusted basis in the reported quarter. Additionally, the foreign exchange adjusted increase in freight revenues per car load was 3%.
Operating income (on an adjusted basis) climbed 23.2% in the second quarter. Operating ratio (operating expenses as a percentage of revenues on an adjusted basis) came in at 58.7% compared with 62.0%, a year ago.
Canadian Pacific Railway Limited Price, Consensus and EPS Surprise
Canadian Pacific Railway Limited Price, Consensus and EPS Surprise | Canadian Pacific Railway Limited Quote
Liquidity
This Zacks Rank #2 (Buy) company exited the second quarter with cash and cash equivalents of C$238 million compared with C$164 million at the end of 2016. Long-term debt totaled C$7,660 million compared with C$8,659 million at the same time around. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the railroad space are keenly waiting for second-quarter earnings reports from key players like Canadian National Railway Company (CNI - Free Report) , Kansas City Southern and Norfolk Southern Corporation (NSC - Free Report) . While Canadian National is scheduled to report its second-quarter results on Jul 25, Kansas City Southern and Norfolk Southern will report on Jul 21 and Jul 26 respectively.
3 Top Picks to Ride the Hottest Tech Trend
Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy...
Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>