Canadian Pacific Railway (CP) Beats on Q1 Earnings - Tale of the Tape
Canadian Pacific Railway Limited (CP) serves the principal business centers of Canada from Montreal to Vancouver, as well as the U.S. Northeast and Midwest regions. The company has extended its network reach by establishing alliances and agreements with other Class I railways in North America, which allows it to provide services and access markets across North America beyond its own rail network. Freight transport forms the main source of revenue for the company.
The company has a disappointing record with respect to earnings, having missed the Zacks Consensus Estimate in each of the last four quarters with an average miss of 4.30%
Zacks Rank: Currently, Canadian Pacific Railway has a Zacks Rank #3 (Hold), but that could definitely change following Canadian Pacific Railway’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Canadian Pacific Railway beats on earnings. Canadian Pacific Railway’s first quarter 2015 earnings per share (on an adjusted basis) of $2.26 (approximately $1.85 per share) beat the Zacks Consensus Estimate of $1.77.
Revenue: Quarterly revenues climbed 10% year over year to C$1,665 million ($1,363 million), which beat the Zacks Consensus Estimate of $1,312 million. Increased freight revenues and reduced costs contributed to the year over year growth. A weak Canadian dollar also aided results.
Key Stats to Note: Operating income witnessed an improvement of 33% year over year to C$612 million on higher shipments. Operating ratio (defined as operating expenses as a percentage of revenues) improved a whopping 880 basis points year over year to 63.2% on continued focus on maintaining asset efficiencies, safety measures and productivity increase.
Stock Price: The earnings beat pleased the investors. Consequently, shares were up more than 1% in early trading.
Check back later for our full write up on this Canadian Pacific Railway earnings report later!
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