The Successful Investor Hotline – Friday, April 24, 2015

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $240.18, Toronto symbol CP, gained 3% this week after reporting record first-quarter revenue and earnings. The company earned $375 million in the three months ended March 31, 2015, up 49.4% from $251 million a year earlier. Per-share earnings jumped 59.2%, to $2.26 from $1.42, on fewer shares outstanding. These results exclude unusual items, such as a foreign-exchange loss on CP’s U.S. dollar-denominated debt and severance costs stemming from a recent restructuring. On that basis, the latest earnings beat the consensus estimate of $2.19. Revenue rose 10.3%, to $1.67 billion from $1.51 billion, matching the consensus forecast. CP saw strong revenue gains from shipping grain, fertilizers, coal, forest products, chemicals and consumer goods. That offset fewer shipments of crude oil, automotive products and metals. The company continues to benefit from its plan to improve its efficiency by speeding up trains and cutting the time spent at terminals. As a result, its operating ratio improved to 63.2% from 72.0% a year ago…