CNI's Q4 Earnings Coming Up: What's in the Offing for the Stock?

Core Viewpoint - Canadian National Railway (CNI) is expected to report a decline in both earnings and revenues for the fourth quarter of 2024 compared to the same period in 2023, influenced by ongoing supply chain issues and weak freight demand [2][4]. Earnings Estimates - The Zacks Consensus Estimate for CNI's fourth-quarter earnings has been revised downward by 7.3% to $1.39 per share, indicating a 6.1$3.11 billion, reflecting a 5.2% decrease compared to the fourth quarter of 2023 [2]. Performance History - CNI has a mixed earnings surprise history, missing the Zacks Consensus Estimate in two of the last four quarters, with an average miss of 0.9% [3]. Influencing Factors - Supply-chain issues, network fluidity challenges, and weak intermodal conditions are expected to negatively impact CNI's performance in the upcoming quarter [4]. - The sluggish freight demand is anticipated to hurt top-line performance, with freight revenues estimated at $4.27 billion, a decline of 0.7$3.5 billion in its capital program [5]. - The company anticipates an adjusted return on invested capital in the range of 13%-15% [5]. Earnings Prediction Model - The current model does not predict an earnings beat for CNI, with an Earnings ESP of -3.67% and a Zacks Rank of 4 (Sell) [6].