Canadian Pacific Railway (TSX: CP) reported earnings on July 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Canadian Pacific Railway met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share expanded significantly.
Margins increased across the board.
Canadian Pacific Railway chalked up revenue of $1.42 billion. The 19 analysts polled by S&P Capital IQ predicted revenue of $1.43 billion on the same basis. GAAP reported sales were 6.1% higher than the prior-year quarter's $1.34 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 $1.36. The 28 earnings estimates compiled by S&P Capital IQ predicted $1.42 per share. GAAP EPS of $1.36 for Q2 were 131% higher than the prior-year quarter's $0.59 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 37.5%, 700 basis points better than the prior-year quarter. Operating margin was 28.1%, 750 basis points better than the prior-year quarter. Net margin was 16.8%, 930 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.53 billion. On the bottom line, the average EPS estimate is $1.72.
Next year's average estimate for revenue is $6.04 billion. The average EPS estimate is $6.09.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 378 members out of 404 rating the stock outperform, and 26 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 94 give Canadian Pacific Railway a green thumbs-up, and nine 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 $121.15.
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