Canadian Pacific Railway Limited
) is set to release its second-quarter 2013 results before the
opening bell on Jul 24, 2013.
In the last quarter, the company delivered a 2.54% earnings
surprise. Let's see how things are shaping up for this
Factors to be Considered this Quarter
Canadian National Railway remains focused on volume expansion,
operational efficiency, pricing revision and network capability
upgrade. We believe that these measures will aid the company in
registering higher revenues in the coming quarters. With the
Industrial and Automotive segments looking bright, we expect
these to counterbalance the weak outlook for the coal business.
The company also faces uncertainty in the global economy along
with labor issues, commodity risks related to the purchase of
diesel, competition from other Canadian and U.S. firms and
currency fluctuations. We expect the company to perform at par
with the broader market in the coming months.
Our proven model does not conclusively show that Canadian
National Railway is likely to beat the Zacks Consensus Estimate
this quarter. This is because a stock needs to have both a
positive Expected Surprise Prediction (ESP) (Read: Zacks Earnings
ESP: A Better Method) and Zacks Rank #1 (Strong Buy), #2 (Buy) or
#3 (Hold) for this to happen. Unfortunately, this is not the case
here as elaborated below.
Negative Zacks ESP
: This is because the Most Accurate estimate is $1.44 while the
Zacks Consensus Estimate is higher at $1.48. This leads to an ESP
of -2.70% for Canadian Pacific Railway.
Zacks Rank #3 (Hold)
: Canadian Pacific Railway's Zacks Rank #3, decreases the
predictive power of ESP.
We caution investors against the stock going into the earnings
announcement, as a Zacks Earnings ESP of -2.70% combined with a
Zacks Rank # 3 lowers the possibility of an earnings surprise.
Other Stocks to Consider
Here are some other companies to consider as our model shows they
have the right combination of elements to post an earnings beat
Expeditors International of Washington Inc.
) has an Earnings ESP of +2.33% and carries a Zacks Rank #3
CDN PAC RLWY (CP): Free Stock Analysis Report
EXPEDITORS INTL (EXPD): Free Stock Analysis
KANSAS CITY SOU (KSU): Free Stock Analysis
UNION PAC CORP (UNP): Free Stock Analysis
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Kansas City Southern
) has an Earnings ESP of +1.79% and carries a Zacks Rank #3
Union Pacific Corporation
) has an Earnings ESP of +0.39% and carries a Zacks Rank #3