Canadian Pacific Kansas City: profit misses forecast, revenue beats in Q3

what happened

Canadian Pacific Kansas City Limited reported adjusted earnings of C$1.28 per share for the quarter ended September 30, compared with C$1.10 a year earlier. According to Earnings Summary, which cites LSEG data, the average forecast of 23 analysts was C$1.32, and the Wall Street range ran from C$1.26 to C$1.39. The figure came in slightly below consensus but within that range.

Revenue grew 15.2% to C$4.22 billion, a bit above the C$4.19 billion analysts expected. Reported EPS was C$1.04, and quarterly net income came in at C$917 million.

The shares have risen 7.1% this quarter and 23.8% so far this year. The mean earnings estimate fell by about 0.5% over the last three months, and seven analysts cut their estimates in the past 30 days, while the consensus rating remains buy.

why it matters

A mixed report: revenue beat expectations, but adjusted profit fell slightly short of forecasts. Given the strong share price gain this year and recent estimate cuts, investors are likely to watch margins and analyst revisions closely in the coming quarters.

market impact

CP shares: profit miss is partly offset by the revenue beat, so pressure is mixed

• ↔CP shares mixed — adjusted EPS below consensus while revenue beat expectations

tags

instruments