Canadian Pacific Railway Beats on Revenue, Matches Expectations on EPS
Canadian Pacific Railway (TSX: CP) reported earnings on Jan. 29. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Canadian Pacific Railway beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins expanded, net margins dropped.
Canadian Pacific Railway booked revenue of $1.51 billion. The 19 analysts polled by S&P Capital IQ expected net sales of $1.49 billion on the same basis. GAAP reported sales were 8.8% higher than the prior-year quarter's $1.38 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.28. The 27 earnings estimates compiled by S&P Capital IQ averaged $1.29 per share. GAAP EPS of $0.08 for Q4 were 94% lower than the prior-year quarter's $1.28 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.5%, 410 basis points better than the prior-year quarter. Operating margin was 25.2%, 360 basis points better than the prior-year quarter. Net margin was 1.0%, 1,470 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.44 billion. On the bottom line, the average EPS estimate is $1.12.
Next year's average estimate for revenue is $6.04 billion. The average EPS estimate is $5.73.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 378 members out of 397 rating the stock outperform, and 19 members rating it underperform. Among 125 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 119 give Canadian Pacific Railway a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Canadian Pacific Railway is hold, with an average price target of $95.14.
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