Canadian Pacific Railway
The 10-second takeaway
For the quarter ended March 31 (Q1), Canadian Pacific Railway beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved significantly.
Margins grew across the board.
Canadian Pacific Railway booked revenue of $1.38 billion. The 17 analysts polled by S&P Capital IQ foresaw a top line of $1.32 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $1.20 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.82. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.81 per share. GAAP EPS of $0.82 for Q1 were 290% higher than the prior-year quarter's $0.21 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.6%, 3,770 basis points better than the prior-year quarter. Operating margin was 19.9%, 1,050 basis points better than the prior-year quarter. Net margin was 10.3%, 740 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.39 billion. On the bottom line, the average EPS estimate is $1.09.
Next year's average estimate for revenue is $5.68 billion. The average EPS estimate is $4.57.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 359 members out of 372 rating the stock outperform, and 13 members rating it underperform. Among 98 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give Canadian Pacific Railway a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Canadian Pacific Railway is hold, with an average price target of $75.17.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.