Canadian Pacific Kansas City’s (CP) third-quarter 2024 earnings (excluding 7 cents from non-recurring items) of 73 cents per share marginally missed the Zacks Consensus Estimate of 74 cents. However, the bottom line improved 5.8% on a year-over-year basis. Results were aided by strong operational efficiency.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Operating revenues of $2.60 billion lagged the Zacks Consensus Estimate of $2.67 billion. However, the top line improved by 4.5% on ...

Economic Overview - The state of the economy is subjective and depends on the perspective of the individual being asked [2] Financial Context - All financial figures mentioned in the article are in Canadian dollars unless otherwise specified [1]

Financial Data and Key Metrics - Revenue for Q3 2024 was $3.5 billion, up 6% YoY, driven by strong volume growth of over 4% [5] - Operating ratio improved to 62.9%, with diluted earnings per share (EPS) at $0.99, an 8% increase YoY [5] - Safety metrics improved, with training accidents decreasing by 17% and personal injuries down 8% [5] - Cash flow from operating activities was $1.272 billion, with $748 million reinvested in capital projects [28] - Adjusted combined free cash flow was $523 million, and the leverage ratio stood at 3.1x, with a target of 2.5x by early 2025 [28] Business Line Performance - Bulk segment: Grain revenues grew 10% on 7% RTM growth, with US grain volumes up 11% and Canadian grain volumes up 3% [14] - Potash revenues increased 7% on 20% volume growth, driven by strong demand and recovery from last year's strike [15] - Coal revenue rose 8% despite a 2% volume decline, with stabilization expected in Q4 [15] - Energy, chemicals, and plastics revenue grew 10% on 6% volume growth, supported by market share gains and synergy wins [16] - Automotive segment achieved record revenue growth of 27% on 37% volume growth, driven by new service solutions and investments [18] - Intermodal revenue declined 5% despite 2% volume growth, with domestic intermodal volumes down 70% due to market challenges [19] Market Performance - US grain volumes grew 11%, benefiting from strong production and new market connections [14] - Canadian grain volumes increased 3%, with favorable pricing and harvest conditions [14] - Mexico saw strong cross-border activity, with opportunities in auto, plastics, and appliances [53] - International intermodal volumes grew 12%, supported by new contracts and recovery from last year's port strike [20] Strategic Direction and Industry Competition - The company received STB approval for the MBNR corridor, enabling a new competitive rail service through Mexico, Texas, and the US Southeast [6] - Investments in hydrogen locomotives and sustainability initiatives, including the successful deployment of a high-horsepower hydrogen locomotive [7] - Strategic capital investments in sidings, crossovers, and track alignment in Mexico and the US to improve network capacity and fluidity [11][12] - Focus on expanding auto and intermodal services, with new facilities and partnerships driving growth [18][19] Management Commentary on Operating Environment and Future Outlook - Despite operational challenges, including a derailment and a strike, the company remains on track to deliver double-digit earnings growth for the full year [4] - Management expressed confidence in the resilience of the network and the ability to deliver strong service to customers [9] - The company expects sequential and YoY improvement in operating ratio (OR) in Q4, driven by strong bulk performance and cost control [29] - Long-term growth outlook remains positive, with high single-digit revenue growth and double-digit EPS growth expected in 2025 [43] Other Important Information - The company completed the first phase of its high-horsepower hydrogen locomotive program, demonstrating leadership in sustainability [7] - The Laredo bridge's second span is on track to open by the end of 2024, doubling capacity and supporting cross-border growth [12] - The company is working on interoperability upgrades for the legacy KCS fleet, with 175 locomotives expected to be fully interchangeable by year-end [11] Q&A Session Summary Question: Impact of Mexican rail reform and potential risks - Management is encouraged by the Mexican government's commitment to freight rail and environmental sustainability, viewing it as an opportunity to grow cross-border business [31] Question: Operating ratio improvement in Q4 - The company expects a 500 basis point sequential improvement in OR, driven by strong bulk performance and the absence of one-time headwinds [32] Question: Volume growth and synergy pipeline - The company is optimistic about growth in bulk, intermodal, and auto segments, with a strong pipeline of opportunities and potential upside to long-term synergy targets [34][40] Question: Core pricing momentum and competitive pressures - Pricing remains strong, with year-to-date performance exceeding 5%, though intermodal faces pressure from trucking capacity [36] Question: Impact of potential US tariff changes - Management believes North American commerce will remain a priority regardless of the US administration, with minimal impact expected on cross-border business [51] Question: Labor issues and volume recovery - The company expects to recover lost RTMs from the strike, particularly in bulk segments like coal and potash, with no significant long-term impact [63] Question: Growth opportunities in 2025 - Key growth areas include international intermodal, auto, and North-South grain movements, supported by strategic investments and new service offerings [46][47][57]

Canadian Pacific Kansas City (CP) reported $2.6 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 4.5%. EPS of $0.73 for the same period compares to $0.69 a year ago. The reported revenue represents a surprise of -2.39% over the Zacks Consensus Estimate of $2.67 billion. With the consensus EPS estimate being $0.74, the EPS surprise was -1.35%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectat ...

Canadian Pacific Kansas City (CP) came out with quarterly earnings of $0.73 per share, missing the Zacks Consensus Estimate of $0.74 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.35%. A quarter ago, it was expected that this railroad would post earnings of $0.74 per share when it actually produced earnings of $0.77, delivering a surprise of 4.05%. Over the last four quarters, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-01342 | --- | --- | |---------------------------------------------------------------------------------------------|--------- ...

Q3 2024 EARNINGS REVIEW October 23, 2024 FORWARD-LOOKING STATEMENTS This investor presentation may contain certain forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws in both the U.S. and Canada. Forwardlooking information includes, but is not limited to, statements concerning expectations, beliefs, targets, plans, goals, objectives, assumptions and statements about possible future events, conditions, and r ...

1 Release: October 23, 2024 CPKC reports third-quarter results driven by solid execution; poised for strong finish to 2024 Calgary – Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today announced its third-quarter results, including revenues of $3.5 billion, diluted earnings per share (EPS) of $0.90 and core adjusted combined diluted EPS of $0.99. 1 "During the third quarter, we delivered strong performance across the operations of our unrivaled North American network, despite dealing with a numbe ...

CALGARY, AB, Oct. 23, 2024 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today announced its third-quarter results, including revenues of $3.5 billion, diluted earnings per share (EPS) of $0.90 and core adjusted combined diluted EPS1 of $0.99. "During the third quarter, we delivered strong performance across the operations of our unrivaled North American network, despite dealing with a number of temporary headwinds," said Keith Creel, CPKC President and Chief Executive Officer. "We ...

A downtrend has been apparent in Canadian Pacific Kansas City (CP) lately with too much selling pressure. The stock has declined 8% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indica ...