Topic: How To Invest

The Successful Investor Hotline – Friday, January 20, 2017

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $201.49, Toronto symbol CP, ships freight over a 22,000-kilometre rail network between Montreal and Vancouver, with links to hubs in the U.S. Midwest and Northeast. Due to a late harvest and bad weather in Western Canada, CP’s Canadian grain volumes fell 6.3% in the three months ended December 31, 2016. Low prices for oil and minerals also prompted producers in Canada and the U.S. to cut their output. The drop in freight volumes cut CP’s revenue in the quarter by 3.0%, to $1.64 billion from $1.69 billion a year earlier. That missed the consensus forecast of $1.65 billion. Earnings in the quarter rose 6.9%, to $448 million from $419 million. Due to fewer shares outstanding, per-share earnings improved 11.8%, to $3.04 from $2.72. These results exclude unusual items. However, the latest earnings per share fell short of the consensus estimate of $3.12. The higher earnings are due to CP’s long-term plan to boost efficiency with new locomotives, upgraded tracks and…