Research Desk Line-up: Union Pacific Post Earnings Coverage

MAIN, GERMANY / ACCESSWIRE / July 24, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Canadian Pacific Railway Ltd (NYSE: CP), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=CP, following the Company's reporting of its financial results on July 19, 2017, for the second quarter fiscal 2017. The railroad Company's operating ratio improved 330 basis points on a y-o-y basis and also exceeded earnings expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Railroads industry. Pro-TD has currently selected Union Pacific Corporation (NYSE: UNP) for due-diligence and potential coverage as the Company reported on July 20, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Union Pacific when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CP; also brushing on UNP. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=CP

http://protraderdaily.com/optin/?symbol=UNP

Earnings Reviewed

For three months ended June 30, 2017, Canadian Pacific Railway's total revenue increased 13.1% on a y-o-y basis to C$1.64 billion. During Q2 FY17, the Company's freight revenue increased 13.5% on a y-o-y basis to C$1.6 billion, contributing 97.6% of total revenue.

For the reported quarter, the Company's operating ratio decreased 330 basis points to 58.7% compared to 62% in Q2 FY16. During Q2 FY17, Canadian Pacific Railway's operating income increased 23.2% on a y-o-y basis to C$679 million.

During Q2 FY17, Canadian Pacific Railway's operating expenses increased 5% on an exchange-adjusted basis. For the reported quarter, the Company's compensation and benefits expense decreased 4% on an exchange adjusted basis, largely due to higher pension income and operating efficiencies. This was partially offset by higher volumes and C$15 million of higher stock-based compensation. For the reported quarter, Canadian Pacific Railway's materials expense increased 23% on an exchange adjusted basis, driven by higher locomotive and railcar maintenance.

For the reported quarter, Canadian Pacific Railway's net income increased 46.3% to C$480 million from C$328 million. During Q2 FY17, the Company's diluted EPS was C$3.27 compared to C$2.15 in the same quarter last year. During Q2 FY17, the Company's adjusted net income increased 30.4% on a y-o-y basis to C$407 million. For the reported quarter, Canadian Pacific Railway's adjusted diluted EPS increased 35.1% on a y-o-y basis to C$2.77, topping Wall Street's expectations for earnings of C$2.72 per share.

Balance Sheet

As on June 30, 2017, Canadian Pacific Railway's cash and cash equivalents were C$238 million compared to C$92 million in Q2 FY16. During Q2 FY17, the Company's cash from operations was C$611 million compared to C$512 million in the same quarter last year.

On July 17, 2017, Canadian Pacific Railway's Board of Directors declared a quarterly dividend of C$0.5625 per share, payable on October 30, 2017, to holders of record at the close of business on September 29, 2017. During Q2 FY17, the Company announced a 3% share buyback program representing repurchase of 438,000 shares.

Outlook

For FY17, Canadian Pacific Railway is forecasting strong export volumes supported by the production of 500,000 tonnes to be shipped in H2 2017. The Company expects materials to remain in the range of C$45 million-C$50 million for fiscal 2017.

Stock Performance

On Friday, July 21, 2017, the stock closed the trading session at $162.16, slightly slipping 0.14% from its previous closing price of $162.39. A total volume of 567.47 thousand shares have exchanged hands. Canadian Pacific Railway's stock price advanced 5.99% in the last three months, 7.40% in the past six months, and 8.83% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 13.58%. The stock is trading at a PE ratio of 20.57 and has a dividend yield of 0.94%. At Friday's closing price, the stock's net capitalization stands at $23.76 billion.

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SOURCE: Pro-Trader Daily