theasisIntroduction I truly believe one of the riskiest situations on the stock market is the one where the market believes "everything is fine." Right now, we could be in such a situation. Inflation, for example, is one of the most important economic indicators the market is watching. Especially after the inflation surge of 2021, inflation has been the single-most watched macro number. Right now, inflation expectations are low. Using New York Fed numbers, inflation expectations haven't been this low si ...

CALGARY, AB, Aug. 9, 2024 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today said it will issue notice to the Teamsters Canada Rail Conference (TCRC) – Train and Engine (T&E) division and TCRC - Rail Traffic Controller (RCTC) division of its plan to lock out employees at 00:01 ET on Aug. 22 if union leadership and the company are unable to come to a negotiated settlement or agree to binding interest arbitration. CPKC is committed to continuing good faith negotiation throughout.The ...

NotYourAverageBear Investment Thesis Canadian Pacific Kansas City Limited (NYSE:CP) is well-positioned to deliver good growth. The company's revenue growth should benefit from strength in the domestic intermodal business and anticipated strong Canadian grain harvest. In addition, the company should see gains from the good revenue synergies from the Canadian Pacific and Kansas City Southern (KCS) merger. The company is executing well in terms of realizing these synergies and is seeing improvements across its ...

Canadian Pacific Kansas City’s (CP) second-quarter 2024 earnings (excluding 6 cents from non-recurring items) of 77 cents per share beat the Zacks Consensus Estimate of 74 cents. The bottom line improved 24.2% on a year-over-year basis. Results were aided by strong operational efficiency.Operating revenues of $2.63 billion marginally beat the Zacks Consensus Estimate of $2.60 billion. The top line improved by 11.4% on a year-over-year basis due to synergies and favorable operating and safety performance.Fre ...

Marvin Samuel Tolentino Pineda/iStock Editorial via Getty Images Introduction It's time to do one of my favorite things: discussing Canadian Pacific Kansas City Limited (NYSE:CP), a company I have been giving the Strong Buy tag since July 2023. My most recent article was written on April 25, when I called the company “One Of My Favorite 'Win-Win' Investments” in the title. Additionally, the stock has been featured in a number of multi-ticker articles since then, as I have been consistently adding to wha ...

Q2 2024 EARNINGS REVIEW July 30, 2024 es and the compl 1997 1997 1997 the complete and the complete of the A A C E C E C E C es and . A service and the e services e and the content of th e a service of the cont e a series of the series of the content of the conten e and the content of th key of the state of e and the s 8 Professional 1999 e a series of the conte FORWARD-LOOKING STATEMENTS This investor presentation may contain certain forward-looking information and forward-looking statements (collectively, ...

Financial Data and Key Metrics - Revenue for Q2 2024 was $3.8 billion, up 8% YoY, driven by strong volume growth of 6% [8] - Operating ratio improved by 280 basis points to 61.8% [8] - EPS increased by 27% to $1.05 [8] - Average terminal dwell declined by 9%, train speed improved by 6%, locomotive productivity increased by 10%, and fuel efficiency improved by 2% [9] - Train accidents decreased by 4%, and personal injuries improved by 38% [9] Business Line Performance - **Bulk**: Grain revenues increased by 17% with 15% RTM growth, driven by strong shipments of corn, soybeans, and wheat to Mexico [12] - **Potash**: Revenues grew by 24% with 11% volume growth, supported by strong export demand [13] - **Coal**: Revenue increased by 3% despite a 2% decline in volume, with export Canadian coal partially offsetting weaker US demand [14] - **Energy, Chemicals, and Plastics (ECP)**: Revenue grew by 10% with 14% volume growth, driven by higher crude shipments and synergies across the portfolio [14] - **Forest Products**: Revenue declined by 1% with a 1% volume drop, impacted by a soft macro environment [15] - **Metals, Minerals, and Consumer Products**: Revenue decreased by 3% with a 9% volume decline, primarily due to lower natural gas prices and labor disruptions [15] - **Automotive**: Record quarter with revenue up 28% and volume growth of 21%, driven by longer-haul volumes from Mexico [16] - **Intermodal**: Revenue declined by 7% with a 3% volume drop, though domestic intermodal volumes grew by 3% [17] Market Performance - **US Grain**: Volumes grew by 17% YoY, driven by strong shipments to Mexico [12] - **Canadian Grain**: Volumes increased by 13%, with expectations of a strong harvest season [12] - **Mexico**: Strong growth in automotive and grain shipments, with new opportunities emerging in cross-border services [16][17] Strategic Direction and Industry Competition - The company is focused on leveraging its expanded network to create unique opportunities and deliver differentiated outcomes [9][10] - Investments in capacity and infrastructure, such as the new Dallas auto compound, are expected to drive future growth [16][33] - The company is well-positioned to deliver strong value creation in 2024 and beyond, with a focus on operational efficiency and disciplined pricing [10][24] Management Commentary on Operating Environment and Future Outlook - The freight environment remains challenging, but the company is leaning into the challenge and creating owner opportunities enabled by its new network [10] - Management is optimistic about the second half of 2024, with strong momentum and a focus on delivering value creation [10][24] - The company expects to reach its target leverage ratio by early 2025, at which point it will evaluate shareholder returns [24] Other Important Information - The company is on track to deliver double-digit core adjusted combined earnings growth, driven by business performance without reliance on shareholder returns [24] - Synergies are ramping up, with expectations of reaching an $800 million run rate by the end of 2024 [27][28] Q&A Session Summary Question: Revenue Synergies and Exit Rate Expectations - Revenue synergies are progressing well, with an expected exit run rate of $800 million by the end of 2024, driven by growth in intermodal, bulk, and ECP franchises [27][28] Question: Dallas Auto Compound Capacity and Growth Potential - The Dallas auto compound has a capacity of 160,000-180,000 units annually, with three OEMs already signed on and potential for further expansion [31][33] Question: Labor Situation and Potential Strike Impact - The company is preparing for a potential labor strike, which could occur by the end of August, but does not expect it to impact guidance unless it lasts more than two weeks [39][44] Question: Capacity and Margin Expansion in 2025 - The company is not capacity-constrained and expects strong margin expansion in 2025, driven by operational efficiency and low incremental costs [51][52] Question: Inflation and Pricing Trends - Inflation is moderating, and the company is seeing strong pricing trends, with a widening spread between pricing and inflation expected to benefit margins [60][61] Question: Grain Crop Outlook - The company is optimistic about the Canadian grain crop, with early indications pointing to a harvest in line with or stronger than the five-year average [78] Question: Laredo Bridge Expansion and Growth Opportunities - The Laredo bridge expansion is expected to improve train speed and velocity, creating growth opportunities in cross-border services [70][71] Question: International Intermodal and Service Performance - Service performance in Mexico has improved, with new service calls at Lázaro and strong demand for cross-border services [73][74] Question: OR Improvement and Stock-Based Compensation - The company does not expect sequential OR improvement in Q3 due to higher stock-based compensation and casualty costs but anticipates a strong Q4 with a record operating ratio [77][66] Question: Labor Issues and Reputational Risk - The potential labor strike could damage Canada's reputation, but the company remains committed to negotiating a fair deal [108][109] Question: Pricing and Legacy Contracts - Most legacy contracts have been repriced, with only one major contract remaining, indicating limited further pricing upside [105]

Canadian Pacific Kansas City (CP) reported $2.63 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 11.4%. EPS of $0.77 for the same period compares to $0.62 a year ago.The reported revenue represents a surprise of +1.17% over the Zacks Consensus Estimate of $2.6 billion. With the consensus EPS estimate being $0.74, the EPS surprise was +4.05%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations t ...

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 June 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 Canadian Pacific Kansas City Limited (Exact name of registrant as specified in its charter) Canada 98-0355078 (State or Oth ...

Release: July 30, 2024 CPKC's strong second-quarter results demonstrate advantages of North American network; carrying momentum into second half of 2024 Calgary – Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today announced its second-quarter results, including revenues of $3.6 billion, diluted earnings per share (EPS) of $0.97 and core adjusted combined diluted EPS of $1.05. 1, 2 "Our excellent second quarter results showcase how the advantages of this unrivaled North American network are being ...