The Successful Investor Hotline – Friday, July 18, 2014

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $209.09, Toronto symbol CP, gained 6% this week after reporting better than expected quarterly results. In the three months ended June 30, 2014, CP’s earnings jumped 47.2%, to $371 million, or $2.11 a share, beating the consensus estimate of $2.09. A year earlier, the company earned $252 million, or $1.43 a share. The higher earnings mainly resulted from CP’s plan to improve its efficiency with new locomotives, better tracks and software that optimizes train loads and speeds. Revenue rose 12.3%, to $1.7 billion from $1.5 billion, also beating the consensus forecast of $1.65 billion. CP saw strong revenue gains from shipping grain after harsh winter weather slowed deliveries in the first quarter of 2014. In response, Ottawa ordered CP and other railways to ship a minimum amount of grain each week to clear the backlog. The company also reported higher revenue from shipping crude oil, coal, chemicals, metals and consumer products. That offset declines in fertilizers, forest products and automotive…