CP Rail earnings rise but volumes slip

Canada’s benchmark index looks set to open the Tuesday session lower, with gold prices still in the red and as Canadian Pacific Railway’s (CP.TO) quarterly results disappoint.

Revenue was little changed at $3.13 billion, matching analysts’ average forecast.

Canadian National also said Monday it’s sticking to its forecast calling for an increase of at least 10 per cent in 2015 per-share profit from last year’s $3.76 – implying earnings of at least $4.14.

In its outlook, the railway says it expects revenue growth this year to be two to three per cent, with an operating ratio below 62 per cent.

In addition to benefitting from lower fuel and labour costs, CN’s productivity gains also came from factors such as the right-sizing of its fleet, which helped the company expand its margins in the quarter in the face of falling volumes. Stockholders of record on Friday, June 26th will be paid a dividend of $0.2892 per share. This represents a $1.25 annualized dividend and a dividend yield of 1.60%. The ex-dividend date is Wednesday, June 24th.

Separately, TheStreet Ratings team rates CANADIAN NATIONAL RAILWAY CO as a Buy with a ratings score of B. Analysts at RBC Capital reiterated a hold rating on shares of Canadian Pacific Railway Limited in a research note on Saturday, July 11th. Analysts at Barclays downgraded shares of Canadian National Railway Company from an “overweight” rating to an “equal weight” rating and lowered their price target for the stock from C$82.00 to C$77.00 in a research note on Thursday, July 16th. CP is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Intermodal traffic consists of retail goods in overseas containers that can be transported by train, ship and truck and in domestic containers and trailers that can be moved by train and truck.