Canadian Pacific Railway Beats Analyst Estimates on EPS
Canadian Pacific Railway (TSX: CP) reported earnings on Oct. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Canadian Pacific Railway met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Margins grew across the board.
Canadian Pacific Railway chalked up revenue of $1.47 billion. The 20 analysts polled by S&P Capital IQ hoped for a top line of $1.49 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $1.29 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 $1.32. The 26 earnings estimates compiled by S&P Capital IQ forecast $1.27 per share. GAAP EPS of $1.32 for Q3 were 25% higher than the prior-year quarter's $1.06 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 35.4%, 210 basis points better than the prior-year quarter. Operating margin was 25.9%, 170 basis points better than the prior-year quarter. Net margin was 15.4%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.52 billion. On the bottom line, the average EPS estimate is $1.32.
Next year's average estimate for revenue is $5.76 billion. The average EPS estimate is $4.26.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 369 members out of 387 rating the stock outperform, and 18 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Canadian Pacific Railway a green thumbs-up, and four 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 $86.28.
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The article Canadian Pacific Railway Beats Analyst Estimates on EPS originally appeared on Fool.com.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. The Motley Fool has no positions in the stocks mentioned above. 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.