Core Insights - Canadian Pacific Kansas City (CPKC) reported strong fourth-quarter results with revenues of $3.9 billion, a diluted EPS of $1.28, and a core adjusted combined diluted EPS of $1.29, reflecting a solid performance in the rail industry [1][10]. Financial Performance - In Q4 2024, revenues increased by 3% to $3.9 billion from $3.8 billion in Q4 2023 [10]. - The reported operating ratio (OR) improved, decreasing by 210 basis points to 59.7% from 61.8% in Q4 2023 [10]. - Core adjusted combined OR decreased by 160 basis points to 57.1% from 58.7% in Q4 2023 [10]. - Reported diluted EPS rose to $1.28 from $1.10 in Q4 2023, while core adjusted combined diluted EPS increased by 9% to $1.29 from $1.18 [10]. - For the full year 2024, CPKC achieved a net income of $3.713 billion, compared to $3.923 billion in 2023 [15]. Operational Highlights - CPKC led the industry with the lowest Federal Railroad Administration (FRA)-reportable train accident frequency among Class 1 railroads for the second consecutive year, continuing a legacy of 17 years of industry leadership [3]. - The company expects continued strong earnings growth in 2025, consistent with multi-year guidance provided at the 2023 Investor Day [4]. Capital Expenditures and Guidance - CPKC plans capital expenditures of $2.9 billion for 2025, reflecting an increase compared to 2024, driven by a higher expected USD/CAD FX rate [10]. - The company anticipates core adjusted diluted EPS to increase between 12% and 18% compared to 2024 core adjusted combined diluted EPS of $4.25 [10]. Company Overview - CPKC operates a transcontinental freight railway spanning Canada, the U.S., and Mexico, providing rail and intermodal transportation services over a network of approximately 20,000 miles [21][22].

Core Points - Canadian Pacific Kansas City (CPKC) has reached a tentative four-year collective agreement with the Teamsters Canada Rail Conference Maintenance of Way Employees Division (TCRC-MWED) [1][2] - The agreement is aimed at benefiting approximately 2,300 engineering service employees across Canada [2] - Details of the agreement will remain confidential until ratification [3] Company Overview - CPKC is the first and only single-line transnational railway connecting Canada, the United States, and Mexico, with extensive access to major ports [4] - The company operates approximately 20,000 route miles and employs around 20,000 railroaders [4] - CPKC offers a range of freight transportation services, logistics solutions, and supply chain expertise to its North American customers [4]

Core Points - Canadian Pacific Kansas City (CPKC) has reached a tentative four-year collective agreement with Unifor, covering approximately 1,200 employees in Canada [1][2] - The agreement aims to benefit employees and their families while ensuring continued service to customers and supporting the Canadian economy [2] - Details of the agreement are currently not disclosed pending ratification [3] Company Overview - CPKC is the first and only single-line transnational railway connecting Canada, the United States, and Mexico, with access to major ports across North America [4] - The company operates approximately 20,000 route miles and employs around 20,000 railroaders, providing extensive rail service and network reach [4] - CPKC is focused on growth alongside its customers, offering freight transportation services, logistics solutions, and supply chain expertise [4]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Canadian Pacific Kansas City (CP) despite lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $0.88 per share, reflecting a +1.2% change year-over-year, while revenues are projected at $2.74 billion, down 1.1% from the previous year [3]. - The consensus EPS estimate has been revised 2.07% lower in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.74%, indicating a bearish outlook from analysts [11]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which increases the likelihood of a positive surprise to nearly 70% [8]. Historical Performance - In the last reported quarter, CP was expected to post earnings of $0.74 per share but delivered $0.73, resulting in a surprise of -1.35% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [13]. Conclusion - Canadian Pacific Kansas City does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, but investors should consider other factors before making investment decisions [16].

Core Viewpoint - Canadian Pacific Kansas City Limited (CP) is expected to report its fourth-quarter 2024 results on January 29, with a downward revision in earnings estimates and a slight decline in revenue expectations compared to the previous year [1][2]. Financial Estimates - The Zacks Consensus Estimate for CP's fourth-quarter earnings has been revised down by 4.4% to 88 cents per share [2]. - Revenue estimates for the fourth quarter are projected at $2.74 billion, indicating a decrease of 1.1% compared to the fourth quarter of 2023 [2]. Earnings Performance History - Canadian Pacific has a mixed earnings surprise history, surpassing the Zacks Consensus Estimate in two of the last four quarters, with an average beat of 1.5% [3]. Factors Influencing Performance - Sluggish freight demand is anticipated to negatively impact top-line performance, with freight revenue estimates at $3.65 billion, reflecting a 1.3% decline from the fourth quarter of 2023 [4]. - Despite lower fuel costs, which are expected to decrease by 13.1% year over year to $3.19 per gallon, bottom-line growth remains uncertain [5]. Operational Efficiency - Canadian Pacific's proactive cost-cutting initiatives are expected to enhance operational efficiency, which may positively influence fourth-quarter results [5]. Earnings Prediction Model - Current analysis indicates that the model does not predict an earnings beat for Canadian Pacific, with an Earnings ESP of -3.74% and a Zacks Rank of 3 (Hold) [6].

CALGARY, AB, Jan. 8, 2025 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) will release its fourth-quarter and full-year 2024 financial and operating results after the market close on Jan. 29, 2025.   CPKC will discuss its results with the financial community in a conference call beginning at 4:30 p.m. ET (2:30 p.m. MT) on Jan. 29, 2025.  Conference Call Access Canada and U.S.: 800-343-4849 International: 203-518-9848  *Conference ID: CPKCQ424 Callers should dial in 10 minutes prior t ...

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The bigger the better? Bill Ackman doesn't think so, at least not when it comes to portfolio size. His Pershing Square Capital Management hedge fund owns only 10 stocks. Ackman has made a fortune picking stocks and has a net worth that tops $9 billion. Two of his stocks could be especially big winners in 2025, according to Wall Street. Wall Street especially likes these two Ackman stocksAnalysts are bullish about most of the stocks in Ackman's portfolio. However, they especially like Canadian Pacific Kansas ...

Patrick J. Ottensmeyer International Railway Bridge more than doubles CPKC capacity at the borderCALGARY, AB, Dec. 17, 2024 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) said today it has completed construction of the new international railway bridge span over the Rio Grande from Laredo, Texas, to Nuevo Laredo, Tamaulipas. Patrick J. Ottensmeyer International Railway Bridge (CNW Group/CPKC) "Completion of this internationally important project more than doubles our capacity to ...

It has been about a month since the last earnings report for Canadian Pacific Kansas City (CP) . Shares have lost about 4.2% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Canadian Pacific Kansas City due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Q3 Earnings ...