|Bid||238.04 x 800|
|Ask||238.08 x 800|
|Day's Range||237.47 - 241.82|
|52 Week Range||167.48 - 247.52|
|Beta (3Y Monthly)||1.23|
|PE Ratio (TTM)||19.09|
|Forward Dividend & Yield||2.55 (1.05%)|
|1y Target Est||256.84|
The Zacks Analyst Blog Highlights: Johnson & Johnson, NextEra, Deere, Cintas and Canadian Pacific
Year-to-date U.S. rail volumes fell for the week ending July 13, according to data from the Association of American Railroads. U.S. rail traffic totaled 14.45 million carloads and intermodal units year-to-date, a 3.3 percent decrease compared with the same period in 2018. Of this, U.S. carloads totaled 7.03 million carloads, down 3.1 percent, while U.S. intermodal containers and trailers totaled 7.42 million units, down 3.5 percent.
As a bellwether to the broader economy, transportation giant CSX (NASDAQ:CSX) attracts for its historical stability. Though it incurred heavy losses during the 2000 tech bubble and the 2008 financial crisis, the company has found a way to come back twice as hard. Today, CSX stock is still trading relatively near its all-time high.Source: Shutterstock However, because the company is a bellwether, it raises questions when it doesn't perform to expectations. Unfortunately, CSX received a painful reminder regarding this lesson.On late Tuesday afternoon, management disclosed its second quarter 2019 earnings results. Although per-share profit was up 7% against the year-ago quarter, the transportation firm missed Wall Street expectations. That sent the CSX stock price down more than 6% during after-hours trading.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn paper, it wasn't a terrible hit. Prior to the disclosure, consensus estimates pegged earning per share at $1.10. The actual tally was only two pennies shy of the forecast. By itself, this miss doesn't warrant such extreme volatility toward the CSX stock price.However, the revenue haul was a different story. Analysts expected the organization to bring in $3.16 billion in top-line sales. As InvestorPlace writer Karl Utermohlen noted, that would have represented a 2% lift on a year-over-year basis. Instead, the transportation firm rang up only $3.06 billion, a nearly 1.4% slide. Naturally, several stakeholders panicked out of CSX stock. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip To be fair, CSX has delivered outstanding revenue performances over the past few quarters. Specifically, between Q2 2018 through Q1 2019, sales growth YoY averaged 8.6%. Therefore, it's possible that investors expected too much out of the organization, and unfairly punished CSX stock. Caution Is Key for CSX Stock2018 was a banner year for both CSX and CSX stock. The company generated nearly $12.3 billion in annual revenue, up 7.4% from 2017 results. Moreover, it was the biggest sales haul since 2014. Thus, CSX had the disadvantage of a tough year-earlier comparison.Another factor (and a bullish one) to consider is the underlying economy. Despite fears about a coming recession, key metrics such as the unemployment rate and consumer confidence indicate that the economy is robust. If accurate, this dynamic has positive implications for the CSX stock price.Let's face it: you probably wouldn't even consider this name if we were in a recession.With all that said, I believe investors should adopt a cautious approach with CSX stock. A major red flag that I see with shares is a clear disconnect with the fundamentals.Between Q4 2006 through Q4 2015, the CSX stock price had an 86% correlation coefficient with the underlying firm's revenue. Stated differently, as revenue increased, so too did shares. And the opposite dynamic was also true. Click to EnlargeBut from Q1 2016 onward, the correlation strength dropped to 80%. That's still a statistically significant rate. However, revenue and the CSX stock price didn't always match up as neatly as they did in the past. Particularly, shares jumped considerably while the company made mostly modest (notwithstanding 2018 results) sales gains.And I think this is why investors jumped ship following the Q2 disclosure. Prior to the earnings report, CSX stock was heading toward overbought territory. However, stakeholders demonstrated that they're willing to drive the price higher, so long as the growth narrative remains intact.The last report demonstrated that this narrative is suspect; hence, the fallout in shares. No Other Confirming Factors Support CSXI don't think I would issue a cautionary note for CSX stock if I had other supporting factors. However, I'm not getting a good read from the fundamentals nor the competitive landscape.For example, rival Canadian Pacific Railway (NYSE:CP) also released its Q2 earnings report. The difference, though, was that Canadian Pacific produced strong results, beating on both per-share profitability and revenue.Regarding fundamental headwinds, our own Thomas Niel mentioned coal demand. Thanks to the Trump administration, coal became a hot-button issue on the political front. However, Niel cited industry data that indicated a downward trend in consumption. In all likelihood, this decline will continue, which doesn't help CSX's cause.Finally, sustained economic strength could help buoy shares. But despite strong economic print, this optimism isn't guaranteed to last forever. We're in a contentious political environment. International flashpoints threaten to undermine our relative peace. And we still have a trade war to figure out.At this point, I think it's fair to say that CSX has more challenges than upside catalysts. As such, I'm going to stay on the sidelines.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Hit the Brakes on High-Flying CSX Stock appeared first on InvestorPlace.
Union Pacific earnings topped views early Thursday after CSX earnings fell short and and Canadian Pacific Railway earnings beat on Tuesday.
We examine how well each major player is trimming fat and improving efficiency on its business amid a potential slowdown.
CSX Corporation (NYSE: CSX) has lowered its revenue outlook for 2019 by 1 to 2 percent in response to a "puzzling" economic backdrop, and it plans to monitor its costs for the remainder of the year, company officials said on July 16. The lowered revenue outlook is in response to several factors, including cheap natural gas prices, which are denting domestic coal demand, slower intermodal volumes and residual impacts on crude-by-rail volumes as a result of a refinery explosion in Philadelphia in June. You see it every week in our reported carloads," said James M. Foote, CSX chief executive officer, during his company's second quarter earnings call on July 16.
CSX Corp.'s not-so-strong second-quarter earnings results are carrying its peers downward on Wednesday, but analysts advise this reaction is creating an opportune moment to be buying. Shares of the overall sector have slid in Wednesday's pre-market, producing moderate declines in Union Pacific , Kansas City Southern , Canadian Pacific Railway and Norfolk Southern due to CSX's disappointing results on Tuesday evening. Only Canadian National Railway has managed to keep its stock flat as the fears of macro pressures persist.
Canadian Pacific's (NYSE: CP) is willing to cut costs in the second half of 2019 should macroeconomic factors put pressure on demand for rail service, company executives said on July 16 during the railroad's second quarter earnings call. "We continue to watch the demand environment closely, and should the macro environment change, we'll continue to adapt our costs base quickly," said CP chief financial officer Nadeem Velani.
Canadian Pacific Railway (NYSE: CP ) on Tuesday reported second-quarter earnings of $4.30 per share, which beat the analyst consensus estimate of $3.20. This is a 74.8% increase over earnings of $2.46 ...
Canadian Pacific Railway earnings for the second quarter of the year have CP stock on its way up Tuesday.Source: Shutterstock Canadian Pacific Railway (NYSE:CP) reported earnings per share of $4.30 for the second quarter of 2019. This is a 36% increase over the company's earnings per share of $3.16 reported in the same period of the year prior. It was also a massive boon to CP stock by blowing past Wall Streets' earnings per share estimate of $3.20 for the quarter.The Canadian Pacific Railway earnings report for the second quarter of the year also includes net income of $724 million. This is better than the company's net income of $436 million reported during the second quarter of 2018.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOperating income reported in the Canadian Pacific Railway earnings release for the second quarter of 2019 comes in at $822 million. That's up from the transportation company's operating income of $627 million reported for the same time last year.Canadian Pacific Railway earnings for the second quarter of the year have revenue coming in at $1.98 billion. This is an improvement over the company's revenue of $1.75 billion reported in the second quarter of the previous year. It was also great news for CP stock by beating out analysts' revenue estimate of $1.51 billion for the period. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip "This quarter, we saw revenue growth across every line of business, strong operating metrics, and our best-ever second-quarter performance from a workload perspective, as measured by Gross Ton-Miles," Keith Creel, President and CEO of Canadian Pacific Railway, said in a statement.CP stock was up 3% as of noon Tuesday. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading As of this writing, William White did not hold a position in any of the aforementioned securities.The post Canadian Pacific Railway Earnings: CP Stock Chugs Higher on Q2 Results appeared first on InvestorPlace.
Canadian Pacific's (NYSE: CP) second quarter net income rose 66 percent amid a 13 percent increase in company revenue, the railroad reported on July 15. CP's financials are reported in Canadian dollars, except for earnings per share. Second quarter net profit totaled C$724 million compared with C$436 million in the second quarter of 2018.
The Zacks Analyst Blog Highlights: United Airlines, Canadian Pacific Railway, Chart Industries, Skechers U.S.A. and Cleveland-Cliff
Canadian Pacific (CP) delivered earnings and revenue surprises of 0.63% and -1.65%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
The upbeat results come against the backdrop of Alberta government's cap on output in January that boosted low crude prices, but made oil shipments by rail less profitable for Canadian producers. Rail shipments have, however, recently recovered with some producers choosing rail again to avoid pipeline congestion. Crude-by-rail volumes jumped by about a quarter to 25,000 carloads in the second quarter, while total carloads, rail cars carrying freight, rose 6%.
CALGARY , July 16, 2019 /PRNewswire/ - Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) today announced record second-quarter revenues of $1.98 billion , an increase of 13 percent from last year, ...