Canadian Pacific (CP) Q3 Earnings Beat Estimates, Rise Y/Y
Zacks Investment Research | Oct 23, 2019 11:35PM ET
Canadian Pacific Railway Limited’s (NYSE:CP) third-quarter 2019 earnings (excluding 11 cents from non-recurring items) of $3.48 per share (C$4.61) surpassed the Zacks Consensus Estimate of $3.41. Quarterly earnings also increased year over year. The bottom line was aided by the company’s prudent cost management, courtesy of the precision scheduled railroading model.
Although quarterly revenues of $1,495.5 million (C$1,979 million) increased year over year, the same fell short of the Zacks Consensus Estimate of $1,504.5 million. Rise in freight revenues led to the year-over-year top-line improvement.
Freight revenues rose 4.2% year over year and contributed 97.6% to the top line. Notably, the company’s freight segment consists of Grain (up 6.5%), Coal (up 7%), Potash (down 10%), Fertilizers and sulfur (up 20%), Forest products (up 2.6%), Energy, chemicals and plastics (up 12.7%), Metals, minerals and consumer products (down 3.4%), Automotive (up 2.4%) and Intermodal (up nearly 1%). In the reported quarter, total freight revenues per revenue ton-miles (RTMs) were up 6% year over year. Also, total freight revenues per carload climbed 3% from the year-ago reported figure.
Operating income increased 10% in the quarter under review. Operating expenses inched up marginally year over year. Operating ratio (operating expenses as a percentage of revenues on an adjusted basis) improved to 56.1% from 58.3% in the prior-year quarter, driven by this railroad operator’s efforts to control costs. Notably, lower the value of this key metric bodes well. Capital spending at the end of the first nine months of 2019 was C$1.15 billion.
Canadian Pacific Railway Limited Price, Consensus and EPS Surprise
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.