Canadian Pacific Railway (TSX: CP) reported earnings on Oct. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Canadian Pacific Railway met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Margins grew across the board.
Canadian Pacific Railway chalked up revenue of $1.47 billion. The 20 analysts polled by S&P Capital IQ hoped for a top line of $1.49 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $1.29 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 $1.32. The 26 earnings estimates compiled by S&P Capital IQ forecast $1.27 per share. GAAP EPS of $1.32 for Q3 were 25% higher than the prior-year quarter's $1.06 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 35.4%, 210 basis points better than the prior-year quarter. Operating margin was 25.9%, 170 basis points better than the prior-year quarter. Net margin was 15.4%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.52 billion. On the bottom line, the average EPS estimate is $1.32.
Next year's average estimate for revenue is $5.76 billion. The average EPS estimate is $4.26.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 369 members out of 387 rating the stock outperform, and 18 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Canadian Pacific Railway a green thumbs-up, and four 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 $86.28.
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