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Canadian Pacific (CP) Stock Up 0.3% on Q4 Earnings Beat

Canadian Pacific Railway Limited CP stock has gained 0.3% since its fourth-quarter 2022 earnings release on Jan 31. The uptick can be attributed to better-than-expected earnings performance.

Quarterly earnings of 81 cents (C$1.14) per share beat the Zacks Consensus Estimate of 79 cents. The bottom line increased year over year.

Revenues of $1,813.6 million (C$2,462 million) lagged the Zacks Consensus Estimate of $1,834.6 million and increased year over year.

Freight revenues, contributing 98% to the top line, rose 21% on a year-over-year basis. CP’s freight segment consists of Grain (up 49%), Coal (down 11%), Potash (up 18%), Forest products (up 17%), Energy, chemicals and plastics (down 7%), Metals, minerals and consumer products (up 19%), Automotive (up 33%) and Intermodal (up 31%).

Revenues at the Fertilizers and sulfur sub-segment were up 11% year over year. In the reported quarter, total freight revenues per revenue ton-miles rose 12% year over year. Total freight revenues per carload increased 7% from the year-ago quarter’s reported figure.

On a reported basis, operating income was up 18.8%, while total operating expenses increased 21.9% year over year in the quarter under review.

Canadian Pacific Railway Limited Price, Consensus and EPS Surprise

Canadian Pacific Railway Limited Price, Consensus and EPS Surprise
Canadian Pacific Railway Limited Price, Consensus and EPS Surprise

Canadian Pacific Railway Limited price-consensus-eps-surprise-chart | Canadian Pacific Railway Limited Quote

Liquidity

Canadian Pacific exited the fourth quarter with cash and cash equivalents of C$451 million compared with C$138 million at the end of September 2022. Long-term debt amounted to C$18,141 million compared with C$19,339 million at the end of September 2022.

Currently, Canadian Pacific carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Transportation Companies

United Airlines’ UAL fourth-quarter 2022 earnings of $2.46 per share beat the Zacks Consensus Estimate of $2.07. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air-travel demand was not as buoyant as in the current scenario. The fourth quarter of 2022 was the third consecutive profitable quarter at UAL since the onset of the pandemic.

Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million. UAL’s revenues increased 51.37% year over year owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.9% from fourth-quarter 2019 (pre-coronavirus) levels.

Delta Air Lines’ DAL fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29 per share. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.

DAL reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis.

J.B. Hunt Transport Services, Inc.’s JBHT fourth-quarter 2022 earnings of $1.92 per share missed the Zacks Consensus Estimate of $2.45 and declined 16% year over year.

JBHT’s total operating revenues of $3,649.62 million also lagged the Zacks Consensus Estimate of $3,796.8 million. The top line jumped 4.4% year over year. Total operating revenues, excluding fuel surcharges, fell 2.9% year over year.

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