Canadian Pacific Railway Limited (NYSE:CP) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Canadian Pacific Railway Limited Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 58.89% to $1.43 in the quarter versus EPS of $0.90 in the year-earlier quarter.
Revenue: Rose 11.39% to $1.5 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Canadian Pacific Railway Limited reported adjusted EPS income of $1.43 per share. By that measure, the company missed the mean analyst estimate of $1.49. It missed the average revenue estimate of $1.51 billion.
Quoting Management: “The second quarter was a significant test for our employees who worked tirelessly during extensive network outages, including more than 40 washouts over a four-day period of historic flooding in Calgary and Southern Alberta,” said CP Chief Executive Officer, E. Hunter Harrison. Harrison also noted that network interruptions during the quarter impacted revenue growth by approximately $25 million or 2 per cent.
“The disciplined execution of our model allowed us to quickly recover from these challenges and restore service for our customers in a timely manner,” added Harrison. “Moving forward, CP is well positioned to continue to build upon its strong first half and deliver record financial and operating results for 2013.”
Key Stats (on next page)…
Revenue increased 1.75% from $1.47 billion in the previous quarter. EPS increased 15.32% from $1.24 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.77 and has not changed. For the current year, the average estimate has moved up from a profit of $6.24 to a profit of $6.26 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)