CPKC(US:CP) Zacks Investment Researchยท2024-04-25 14:51Core Insights - Canadian Pacific Kansas City Limited (CP) reported first-quarter 2024 earnings per share of 69 cents, missing the Zacks Consensus Estimate of 70 cents, but showing a year-over-year increase of 9.5% [1] - Quarterly revenues reached $2.61 billion, surpassing the Zacks Consensus Estimate of $2.59 billion, and improved by 0.8% year over year [1] - Freight revenues, which accounted for 97.4% of total revenues, increased by 54.6% year over year, with significant growth in various segments such as Coal (up 115%) and Automotive (up 112%) [1] Financial Performance - Total Freight revenues per revenue ton miles increased by 12% year over year, while total Freight revenues per carload declined by 2% year over year [2] - Operating income rose by 33.8%, but total operating expenses surged by 65% year over year, primarily due to increased labor and fuel costs [2] - The operating ratio deteriorated by 400 basis points to 67.4% from 63.4% in the previous year, indicating higher costs [2] Cash and Debt Position - At the end of the first quarter, cash and cash equivalents stood at C$519 million, up from C$464 million in the previous quarter, while long-term debt decreased to C$18.83 billion from C$19.35 billion [2] Future Outlook - Management anticipates core adjusted combined earnings for 2024 to grow in double digits from the 2023 figure of C$3.84 per share, with capital expenditures projected at C$2.75 billion [3] Industry Comparisons - Delta Air Lines reported first-quarter 2024 earnings of 45 cents per share, exceeding estimates and showing an 80% year-over-year increase, with revenues of $13.75 billion also surpassing expectations [4] - CSX Corporation's first-quarter 2024 earnings per share of 46 cents beat estimates but declined by 4% year over year, with total revenues of $3.68 billion slightly above expectations but down 1% year over year [4][5]