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Canadian Pacific Railway's Earnings Beat Last Year's by 49%

By Seth Jayson - Updated Apr 10, 2017 at 1:45PM

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Just the facts, Fool.

Canadian Pacific Railway (TSX: CP) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Canadian Pacific Railway met expectations on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share expanded significantly.

Margins grew across the board.

Revenue details
Canadian Pacific Railway booked revenue of $1.47 billion. The 19 analysts polled by S&P Capital IQ expected sales of $1.46 billion on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter's $1.38 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.22. The 26 earnings estimates compiled by S&P Capital IQ predicted $1.19 per share. GAAP EPS of $1.22 for Q1 were 49% higher than the prior-year quarter's $0.82 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 33.6%, 530 basis points better than the prior-year quarter. Operating margin was 24.2%, 520 basis points better than the prior-year quarter. Net margin was 14.5%, 420 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.47 billion. On the bottom line, the average EPS estimate is $1.42.

Next year's average estimate for revenue is $6.03 billion. The average EPS estimate is $6.01.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 381 members out of 406 rating the stock outperform, and 25 members rating it underperform. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Canadian Pacific Railway a green thumbs-up, and eight 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 $113.35.

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