Canadian Pacific Railway Limited (NYSE:CP) is scheduled to report Q4 earnings results on January 29, 2020. A conference call to discuss earnings is scheduled for 10 a.m. ET.
The company is expected to report earnings of $3.60/share on revenue of $1.56 billion. The consensus earnings per share (EPS) of $3.60/share is based on a poll of 24 analysts and represents a growth of 8.1% over the same quarter last year when the company reported earnings of $3.33/share.
The revenue forecast of $1.56 billion based on a poll of 19 analysts implies a year-over-year (YoY) growth of 6.1%. Last year the company reported $1.47 billion in revenue for the quarter.
| Metric | Expected | Prior Year | YoY Change |
|---|---|---|---|
| Revenue | $1,559.50 | $1,469.62 | 6.1% |
| EPS | $3.60 | $3.33 | 8.1% |
Earnings Call Trends
Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarter.
What are your expectations from the Canadian Pacific Railway for earnings this quarter? Let us know in the comments!
| Quarter | Expected | Reported | Surprise | Result |
|---|---|---|---|---|
| Q3, 2019 | $3.41 | $3.48 | 2.0% | Beat |
| Q2, 2019 | $3.20 | $3.28 | 2.6% | Beat |
| Q1, 2019 | $2.22 | $2.09 | -6.0% | Missed |
| Q4, 2018 | $3.10 | $3.33 | 7.4% | Beat |
| Q3, 2018 | $3.17 | $3.19 | 0.5% | Beat |
| Q2, 2018 | $2.34 | $2.40 | 2.6% | Beat |
| Q1, 2018 | $2.09 | $2.09 | 0.2% | Beat |
| Q4, 2017 | $2.53 | $2.56 | 1.2% | Beat |
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.
After the last earnings report for the period ending September 30, 2019, the stock price reacted by increasing by 3.4%.
| Report Date | Price Day Prior | Price Next Day | Change % | Result |
|---|---|---|---|---|
| 2019-10-23 | $219.73 | $227.29 | 3.4% | Increase |
| 2019-07-16 | $236.97 | $244.50 | 3.2% | Increase |
| 2019-04-23 | $218.96 | $224.42 | 2.5% | Increase |
| 2019-01-23 | $196.11 | $202.10 | 3.1% | Increase |
Fundamentals And Technical Analysis
Canadian Pacific Railway is currently trading at $259.15/share, down -1.3% for the day. The company is trading at approximately 96.8% of its 52-week high of $267.63/share. The company’s stock price is up 14.0% since the last earnings report and down -1.0% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 70.51 suggests the company is trading in technically overbought territory. The RSI is considered overbought when above 70 and oversold when below 30.
Source: Finbox The current share price implies a price-to-earnings (P/E) multiple of 20.3x and a forward P/E multiple of 20.7x. Canadian Pacific Railway’s current share price also implies a price-to-book (P/B) multiple of 6.5x. The following table summarizes some other key fundamental ratios:
| Metric | Value |
|---|---|
| Last Fiscal Period | FY2019.Q3 |
| Period End Date | September 30, 2019 |
| Stock Price (Current) | $259.15 |
| P/E Ratio | 20.3x |
| P/E Ratio (Fwd) | 20.7x |
| PEG Ratio | 2.2 |
| Total Debt to Capital (%) | 16.6% |
| Levered Free Cash Flow | $961.6 million |
| Enterprise Value / EBITDA | 13.5x |
Source: Finbox
Company Profile: Canadian Pacific Railway Limited
Canadian Pacific Railway Limited is a large-cap stock with a market capitalization of $35.931 billion and a total enterprise value of $42.978 billion. The company operates in the Industrials sector and the Road & Rail industry.
Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States.
The company transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; and merchandise freight, such as energy, chemicals and plastics, metals, minerals and consumer, automotive, and forest products. It also transports intermodal traffic comprising retail goods in overseas containers.
The company offers rail and intermodal transportation services through a network of approximately 12,500 miles serving business centers in Quebec and British Columbia, Canada; and the United States Northeast and Midwest regions.
Canadian Pacific Railway Limited was founded in 1881 and is headquartered in Calgary, Canada.
