Canadian National Railway Beats Up on Analysts Yet Again
Canadian National Railway (TSX: CNR) reported earnings on Jan. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Canadian National Railway beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and earnings per share expanded significantly.
Gross margins dropped, operating margins contracted, net margins grew.
Canadian National Railway booked revenue of $2.3 billion. The 17 analysts polled by S&P Capital IQ looked for sales of $2.3 billion. Sales were 9.9% higher than the prior-year quarter's $2.1 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.28. The 13 earnings estimates compiled by S&P Capital IQ averaged $1.22 per share on the same basis. GAAP EPS of $1.30 for Q4 were 19% higher than the prior-year quarter's $1.10 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 47.4%, 260 basis points worse than the prior-year quarter. Operating margin was 35.3%, 130 basis points worse than the prior-year quarter. Net margin was 24.9%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.3 billion. On the bottom line, the average EPS estimate is $1.03.
Next year's average estimate for revenue is $9.5 billion. The average EPS estimate is $5.35.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Canadian National Railway is hold, with an average price target of $79.87.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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