What's in Store for Canadian Pacific KC (CP) in Q2 Earnings?

Core Insights - Canadian Pacific Kansas City Limited (CP) is set to report its second-quarter 2024 results on July 30, with a mixed earnings surprise history, surpassing estimates in two of the last four quarters and missing in two, averaging a miss of 1.32% [1] - Rising operating expenses, primarily due to increased labor and fuel costs, are negatively impacting the company's performance in the upcoming quarter [1] - The Zacks Consensus Estimate for CP's earnings has been revised down by 1.3% to 74 cents per share, while revenue estimates stand at $3.5 billion, reflecting a 1.7% decline from the first quarter of 2024 [1] Revenue Estimates - Freight revenue is estimated at $3.4 billion, down 1.5% compared to the first quarter of 2024, while other revenues are projected at $83 million, indicating a 10.7% decrease from the previous quarter [2] - Despite overall freight-related weakness, the Potash segment is expected to perform well, with freight revenues projected to increase by 14.6% in the second quarter of 2024 compared to the first quarter [2] Earnings Prediction Model - The current model does not predict an earnings beat for Canadian Pacific Kansas City, with an Earnings ESP of -0.20% and a Zacks Rank of 3 (Hold) [3] Q1 Highlights - In the first quarter of 2024, CP reported earnings of 69 cents per share, missing the Zacks Consensus Estimate of 70 cents, but showing a year-over-year increase of 9.5% [4] - Quarterly revenues reached $2.61 billion, surpassing the Zacks Consensus Estimate of $2.59 billion, and improved by 0.8% year over year, with freight revenues contributing 97.4% to the top line and rising 54.6% year over year [4] Stocks to Consider - JetBlue Airways (JBLU) has an Earnings ESP of +22.96% and a Zacks Rank of 3, scheduled to report on July 30, with a history of surpassing estimates in three of the last four quarters [5] - Expeditors International of Washington (EXPD) has an Earnings ESP of +0.69% and a Zacks Rank of 2, set to report on August 6, but has a less favorable earnings surprise history [5]