Canadian Pacific Railway Limited Revises FY2022 EPS Estimates Lower

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Canadian Pacific Railway ($TSX:CP) Limited (CPR) is a leading North American railway company operating in Canada and the United States. The company transports goods and commodities such as oil, grain, coal, containers, and automotive products, among others. It is also a major provider of intermodal freight transportation services. Recently, an analyst from a major investment bank has revised their earnings per share (EPS) estimates for FY2022 for CPR to a lower level. This downward revision is due to the fact that the company’s earnings have been impacted by the pandemic and the resulting slowdown in global economic activity. The analyst expects that the company’s operating income will be lower than what was originally forecasted due to decreased freight volumes and higher operating expenses. Furthermore, the analyst also noted that the company has been facing increased competition from other freight transport providers in recent months. This has resulted in lower prices and reduced margins for the company.

In addition, increased fuel prices have also had a negative impact on CPR’s profitability. Despite these issues, the analyst believes that CPR is well-positioned to benefit from the expected recovery in global economic activity in the coming months. It is estimated that freight volumes will increase significantly during the second half of 2022, which should lead to higher revenues and profits for the company. Overall, despite the downward revision to its FY2022 EPS estimates, CPR is expected to remain a strong player in the freight transportation industry. Its strong brand name and extensive network of rail lines across North America will help it to continue to be a leader in the industry going forward.

Stock Price

On Monday, Canadian Pacific Railway Limited (CP) revised their FY2022 earnings per share (EPS) estimates lower. So far, news sentiment surrounding the announcement has been mostly negative. Despite this, the company’s stock opened at CA$106.1 and went on to close at CA$106.6, a 0.6% increase from its previous closing price of CA$106.0. The Canadian Pacific Railway is a transcontinental railway network in Canada owned by CP. The railway operates freight and passenger services and provides intermodal transportation services. It is one of the largest railway companies in North America and has a presence in both the United States and Canada. CP has a long and storied history in Canada and is the country’s oldest railway company.

Over the years, CP has adopted a number of innovative technologies to improve its operations and modernize its services. CP’s revised FY2022 EPS estimates have been met with some negative sentiment from investors and analysts alike. Despite this, the company has continued to move forward and remain competitive in the industry. CP’s commitment to innovation and modernizing its services will no doubt help it remain competitive in the future. With its extensive network and long history of service, CP is sure to remain an important part of Canada’s transportation network for years to come. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for CP. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for CP. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for CP. More…

Key Ratios Snapshot

Some of the financial key ratios for CP are shown below. More…

VI Analysis

CANADIAN PACIFIC RAILWAY is an attractive investment for those seeking an opportunity with a medium risk rating. The VI App has made analyzing the company’s fundamentals easy and straightforward. The app’s VI Risk Rating assigns a medium risk rating to the company, indicating that it is a safe and reliable investment in terms of both financial and business aspects. The app has also detected two risk warnings in the balance sheet and cashflow statement, which can be further investigated by registering with the app. This gives investors an opportunity to assess the company’s financial health in greater detail before making a decision. Overall, CANADIAN PACIFIC RAILWAY is an excellent option for those looking for a medium risk investment with potential for long term success. With the help of the VI App, investors have access to a comprehensive analysis of the company’s fundamentals, allowing them to make informed decisions. More…

VI Peers

The company was founded in 1881 and is headquartered in Calgary, Alberta. The Canadian Pacific Railway is the second largest railway company in North America by revenue, after Union Pacific Corporation. The company’s main competitors are CSX Corporation, Canadian National Railway Company, and Union Pacific Corporation.

– CSX Corp ($NASDAQ:CSX)

CSX Corp is a publicly traded company with a market capitalization of $61.1 billion as of 2022. The company has a return on equity of 29.02%. CSX Corp is a diversified transportation company that provides rail, intermodal, and coal transportation services throughout the United States. The company operates approximately 21,000 route miles of track and serves more than 2,000 customers. CSX Corp’s customers include major shippers, such as General Electric, Procter & Gamble, and Ford Motor Company.

– Canadian National Railway Co ($TSX:CNR)

Canadian National Railway Co has a market cap of 109.41B as of 2022. The company has a return on equity of 20.67%. It is engaged in the operation of rail transportation services in Canada and the United States.

– Union Pacific Corp ($NYSE:UNP)

Union Pacific Corporation is an American railroad conglomerate based in Omaha, Nebraska that operates 8,300 locomotives over 32,200 miles of track in 23 states west of Chicago and New Orleans. Union Pacific is the largest railroad in North America by revenue and the largest employer in Omaha.

Summary

Investors interested in Canadian Pacific Railway Limited (CP) should be aware that the company has recently revised its earnings per share (EPS) estimates for FY2022 downwards. This news has been generally met with a negative sentiment, as stock prices have been volatile in response. For those seeking to invest in CP, it is important to consider the company’s current financial performance, future growth prospects, and potential risks. CP’s financials show solid revenue growth over the last several years, and it has generated strong cash flows. Its operating margin is also healthy, though earnings have been volatile. Going forward, CP is positioned to benefit from increasing freight volumes and ongoing network expansion initiatives.

However, investors should also be cognizant of potential risks associated with the company’s reliance on fuel prices, regulatory changes, and competition from other railroads. Overall, CP appears to offer investors a compelling long-term investment opportunity.