Topic: How To Invest

The Successful Investor Hotline – Friday, July 20, 2018

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $255.70, 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. Following a brief strike, the company recently settled with the union representing its conductors and electrical workers. Due to the disruption, CP’s earnings in the three months ended June 30, 2018, fell 9.2%, to $436 million from $480 million a year earlier. With fewer shares outstanding, per-share earnings declined at a slower rate of 7.0%, to $3.16 from $3.27. If you disregard unusual items, including a charge related to CP’s U.S.-dollar debt, earnings per share improved 14.1%, to $3.16 from $2.77. On that basis, the latest earnings beat the consensus estimate of $3.11. In the quarter, revenue rose 6.5%, to $1.75 billion from $1.64 billion a year earlier. That also exceeded the consensus forecast of $1.73 billion. Most of the higher revenue came from shipping oil, metals, minerals, grain, potash and automotive products. Those gains…

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