Ur Energy (URG) Q3 Earnings Preview: What's Shaping Up?
Canadian Pacific Railway Limited CP reported lower-than-expected earnings and revenues in first-quarter 2018. Results were hurt by rough weather conditions.
The company’s earnings (excluding 23 cents from non-recurring items) of $2.13 per share (C$2.70) lagged the Zacks Consensus Estimate of $2.16. However, the bottom line improved 12.1% from the year-ago figure.
Quarterly revenues increased 8% year over year to $1,312 million (C$1.66 billion) but fell short of the Zacks Consensus Estimate of $1,313 million. Freight revenues, which improved 4% year over year, accounted for bulk (97.8%) of the top line.
The earnings and revenues miss disappointed investors and consequently the stock dipped 1.1% in after-hours trading on Apr 18.
Notably, the company's freight segment consists of Grain (down 9%), Coal (up 2%), Potash (up 14%), Sulfur and Fertilizer (up 3%), Forest products (down 1%), Energy, Chemicals and Plastics (up 13%), Metals, Minerals and Consumer products (up 8%), Automotive (down 7%) and Intermodal (up 13%). In the reported quarter, total freight revenues per revenue ton miles (RTMs) were down 2% year over year. Also, freight revenues per car load remained unchanged year over year.
Operating income (on an adjusted basis) slid 2.3% in the first quarter. Operating ratio (operating expenses as a percentage of revenues on an adjusted basis) came in at 67.5% compared with 65.6% a year ago. Operating expense rose 12.3% year over year.
Canadian Pacific Railway Limited Price, Consensus and EPS Surprise
Canadian Pacific Railway Limited Price, Consensus and EPS Surprise | Canadian Pacific Railway Limited Quote
This Zacks Rank #3 (Hold) company exited the first quarter of 2018 with cash and cash equivalents of C$125 million compared with C$338 million at the end of 2017. Long-term debt totaled C$7,601 million compared with C$7,413 million in December 2017. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the railroad space are keenly awaiting first-quarter earnings reports from the key players, namely Kansas City Southern KSU, Norfolk Southern Corporation NSC and Union Pacific Corporation UNP. While Kansas City Southern will report first-quarter earnings on Apr 20, Norfolk Southern and Union Pacific will announce the same on Apr 25 and Apr 26, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $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 regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Kansas City Southern (KSU) : Free Stock Analysis Report
Union Pacific Corporation (UNP) : Free Stock Analysis Report
Norfolk Southern Corporation (NSC) : Free Stock Analysis Report
Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research