Topic: How To Invest

The Successful Investor Hotline – Friday, April 20, 2018

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $223.48, 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 union representing CP’s conductors and electrical workers is threatening to go on strike this Saturday. That would severely disrupt its operations. However, a long strike seems unlikely. In light of CP’s importance to Canada’s economy, the federal government would likely bring in back-to-work legislation to end the walkout. As well, CP could probably pass along at least some of its extra labour costs to its customers. Meanwhile, the company has now reported its earnings for the three months ended March 31, 2018. Profit rose 6.0%, to $390 million from $368 million a year earlier. Due to fewer shares outstanding, per-share earnings gained 8.0%, to $2.70 from $2.50. Those figures exclude unusual items, among them a charge related to CP’s U.S.-dollar debt. On that basis, the latest earnings beat the consensus estimate of $2.67. In…

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