The Successful Investor Hotline – Friday, October 23, 2015

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $202.17, Toronto symbol CP, reported lower freight volumes in the latest quarter, mainly due to falling prices for oil and other commodities, but the railway still reported better-than-expected results. In the three months ended September 30, 2015, CP earned $427 million, up 6.8% from $400 million a year earlier. Per-share profits jumped 16.5%, to $2.69 from $2.31, on fewer shares outstanding. These results exclude unusual items, such as gains on asset sales. On that basis, the latest earnings beat the consensus estimate of $2.67. Revenue gained 2.3%, to $1.71 billion from $1.67 billion, also beating the consensus forecast of $1.69 billion. The company saw higher revenue from shipping forest products (up 26.9%); potash (up 17.1%); U.S. grain (up 16.5%); other fertilizers (up 12.7%); coal (up 8.7%); chemicals (up 8.1%); Canadian grain (up 5.2%); and automotive products (up 4.8%). But these gains were offset by lower shipments of crude oil (down 19.9%); metals (down 8.9%); domestic goods (down 6.4%); and…