Golf Clap for Canadian National Railway

Seth Jayson, The Motley Fool
Updated

Canadian National Railway (TSX: CNR) reported earnings on Jan. 22. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), Canadian National Railway met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased.


Gross margins increased, operating margins expanded, net margins shrank.

Revenue details
 Canadian National Railway logged revenue of $2.54 billion. The 20 analysts polled by S&P Capital IQ wanted to see revenue of $2.57 billion on the same basis. GAAP reported sales were 8.7% higher than the prior-year quarter's $2.34 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $1.41. The 28 earnings estimates compiled by S&P Capital IQ forecast $1.41 per share. GAAP EPS of $1.41 for Q4 were 7.6% higher than the prior-year quarter's $1.31 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 50.0%, 260 basis points better than the prior-year quarter. Operating margin was 36.4%, 110 basis points better than the prior-year quarter. Net margin was 24.1%, 80 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $2.53 billion. On the bottom line, the average EPS estimate is $1.30.

Next year's average estimate for revenue is $10.67 billion. The average EPS estimate is $6.22.

Investor sentiment

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 $93.69.

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The article Golf Clap for Canadian National Railway 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 position in any of the stocks mentioned. 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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