It has been about a month since the last earnings report for Canadian Pacific Kansas City (CP) . Shares have added about 3.7% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Canadian Pacific Kansas City due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.CP's Q2 Earnings Mi ...

Financial Performance - Scales Corporation's Underlying EBITDA for 1H25 increased by 43% to $86.7 million, compared to $60.5 million in 1H24[14] - Underlying NPAT for 1H25 rose by 48% to $56.9 million, up from $38.4 million in 1H24[14] - Underlying NPATAS increased significantly by 72% to $48.9 million, compared to $28.5 million in 1H24[14] - The company anticipates Underlying NPATAS to be between $45.0 million and $50.0 million for FY25[14, 67] Divisional Results - Horticulture division experienced exceptional growth, with Underlying EBITDA increasing by 77.4% to $53.2 million in 1H25, compared to $30.0 million in 1H24[14, 23] - Logistics division also showed excellent results, with Underlying EBITDA up by 59.9% to $6.1 million in 1H25, compared to $3.8 million in 1H24[14, 23, 56] - Global Proteins division maintained a steady performance, with Underlying EBITDA at $29.7 million in 1H25, a slight increase of 0.5% from $29.6 million in 1H24[14, 23, 37] Balance Sheet - Net debt decreased to $67.5 million as of June 30, 2025, compared to $81.9 million as of June 30, 2024[25] - Approximately 55% of the Horticulture crop had been sold as of June 30, 2025, compared to 54% as of June 30, 2024[30] - Premium volumes accounted for approximately 75% of total export sale volumes, compared to 72% in 2024[52]

Core Insights - Union Pacific Corporation (UNP) is set to report its second-quarter 2025 results on July 24, with earnings estimated at $2.89 per share, reflecting a 5.47% increase year-over-year [1] - The revenue estimate for the same quarter is $6.11 billion, indicating a 1.7% rise from the previous year [1] Earnings Estimates - The Zacks Consensus Estimate for Q2 2025 earnings has been revised upward by 1.76% over the past 60 days [2] - The current earnings estimate for Q1 2025 is $2.89, while the previous estimates were $2.88 (7 days ago) and $2.84 (30 days ago) [2] - The average earnings surprise for UNP over the last four quarters is 1.18%, with two quarters exceeding estimates and two falling short [2] Revenue and Market Conditions - Freight revenues are expected to be $5.7 billion, showing a decline from Q1 2025 [4] - Other revenues are estimated at $339.8 million, representing a 1.1% increase from Q4 2024 [5] - The freight market downturn and a soft consumer market are anticipated to negatively impact margins and revenues in Q2 [4] Cost Management and Operational Efficiency - Cost-cutting measures are expected to support the bottom line, with operating expenses projected to decline compared to the previous year [6] - The operating ratio is expected to improve by 20 basis points to 60.2% in Q2 2025 [6] Shareholder Returns - Union Pacific is committed to rewarding shareholders, with a capital plan of $3.4 billion and share repurchases between $4 billion and $4.5 billion [7] - Strong free cash flow supports these shareholder-friendly initiatives [7] Earnings Prediction Model - The earnings prediction model indicates a potential earnings beat for Union Pacific, supported by a positive Earnings ESP of +0.50% and a Zacks Rank of 3 [8]

Group 1: Company Overview - Landstar System, Inc. (LSTR) is currently facing multiple headwinds, making it an unimpressive investment option [1] - The company is experiencing reduced demand for freight services and increased truck capacity, leading to low shipment volumes and rates [1][8] - The truck transportation segment, a key area for LSTR, is underperforming, contributing to weak revenue outlooks [1][8] Group 2: Economic and Industry Challenges - High inflation continues to negatively impact consumer sentiment and growth expectations, affecting trucking companies' profitability [2] - The trucking industry is battling a persistent driver shortage, complicating recruitment efforts as older drivers retire [3] - LSTR's stock has declined by 21.1% year-to-date, underperforming the transportation-truck industry's overall decline of 18% [3][8] Group 3: Earnings Estimates and Performance - The Zacks Consensus Estimate for LSTR's second-quarter 2025 earnings has been revised downward by 14.8% in the past 60 days, indicating a lack of confidence from brokers [7] - Earnings expectations for LSTR suggest a decline of 22.3% year-over-year for the second quarter of 2025 and an 11.3% decline for the full year [11] - LSTR has a weak earnings surprise history, lagging the Zacks Consensus Estimate in three of the last four quarters with an average miss of 3.34% [10] Group 4: Industry Ranking - The industry to which LSTR belongs has a Zacks Industry Rank of 244 out of 248 groups, placing it in the bottom 1% of Zacks industries [12] - The performance of the industry group significantly influences stock price movements, indicating that LSTR's prospects are tied to the overall industry performance [12]

Company Overview - Landstar System, Inc. (LSTR) is currently facing multiple headwinds, making it an unimpressive investment option [1] - The company is experiencing reduced demand for freight services and increased truck capacity, leading to low shipment volumes and rates [2] Financial Performance - Revenues are expected to remain weak, particularly in the truck transportation segment, with first-quarter 2025 truckloads projected to decline by 2-7% year-over-year [2] - Truck revenue per load is anticipated to decrease by 2% to increase by 3% year-over-year [2] Industry Challenges - The trucking industry is struggling with a persistent driver shortage, as older drivers retire and younger generations show little interest in trucking jobs [3] - LSTR's shares have dropped 18.5% over the past year, while the transportation-truck industry has seen a decline of 37.6% [3] Earnings Estimates - The Zacks Consensus Estimate for current-quarter earnings has been revised down by 18.4% in the past 90 days, with a 14.8% downward revision for the current year [6] - LSTR has a history of disappointing earnings surprises, lagging the Zacks Consensus Estimate in two of the last four quarters with an average miss of 0.65% [7] Industry Ranking - LSTR's industry has a Zacks Industry Rank of 171 out of 248 groups, placing it in the bottom 31% of Zacks industries [9] - The performance of the industry group is crucial, as studies indicate that 50% of a stock's price movement is tied to its industry performance [9]