The Successful Investor Hotline – Thursday, April 22, 2016

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $189.30, 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. The company reported 4.4% lower freight volumes in the latest quarter. That’s mainly due to weaker prices for oil, minerals and other commodities. They forced many producers in Canada and the U.S. to reduce their production and so their shipping. As more U.S. power utilities switch to natural gas, coal shipments have also suffered. In the three months ended March 31, 2016, CP’s revenue fell 4.4%, to $1.59 billion from $1.67 billion a year earlier. That missed the consensus forecast of $1.61 billion. However, earnings in the quarter rose 2.4%, to $384 million from $375 million. Due to fewer shares outstanding, per-share earnings jumped 10.6%, to $2.50 from $2.26. These results exclude unusual items. On that basis, the latest earnings beat the consensus estimate of $2.41 a share. The higher earnings are mainly…