Canadian National Railway Earnings: Here’s Why Shares are Down Now

Canadian National Railway Company (NYSE:CNI) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.23%.

Canadian National Railway Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 10.67% to $1.66 in the quarter versus EPS of $1.50 in the year-earlier quarter.

Revenue: Rose 6.56% to $2.67 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Canadian National Railway Company reported adjusted EPS income of $1.66 per share. By that measure, the company beat the mean analyst estimate of $1.62. It missed the average revenue estimate of $2.69 billion.

Quoting Management: Claude Mongeau, president and chief executive officer, said: “We executed strongly during the second quarter, with service and operating metrics on a steady improvement trend. This performance underscores our agenda of Operational and Service Excellence, which is key to achieve solid revenue growth at low incremental cost.
“Looking forward, despite slower volume growth than anticipated, the CN team will maintain a keen focus on growing revenues faster than the overall economy as well as on tightly managing costs to meet our full-year financial outlook.”

Key Stats (on next page)…

Revenue increased 9.85% from $2.43 billion in the previous quarter. EPS increased 36.07% from $1.22 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.67 to a profit $1.68. For the current year, the average estimate is a profit of $6.12, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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