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Canadian Pacific Railway Limited (CP) Beats Q3 Earnings

Canadian Pacific Railway LimitedCP Canadian Pacific serves the principal business centers of Canada from Montreal to Vancouver, as well as the U.S. Northeast and Midwest regions. The company has extended its network reach by establishing alliances and agreements with other Class I railways in North America, which allows it to provide services and access markets across North America beyond its own rail network. Freight transport forms the main source of revenue for the company.

Canadian Pacific Railway is set to gain from strong the Industrial and Automotive segments. Moreover, solid Merchandize segment and increased Canadian coal exports may boosts the company's business in the upcoming quarters. However, declining crude oil prices may force the oil producers to curtail production, thus affecting the company's profitability in the upcoming quarters.

Currently, Canadian Pacific Railway has a Zacks Rank #3 (Hold), but that could definitely change following Canadian Pacific Railway's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Canadian Pacific Railway beat earnings. Our consensus earnings estimate called for EPS of $2.03/share, and the company reported EPS of $2.05 instead. Investors should note that these figures take out stock option expenses.

Revenue: Canadian Pacific Railway reported revenues of $1,308.1 million. This missed our consensus estimate of $1,318 million.

Key Stats to Note: Canadian Pacific Railway reported record operating ratio for the reported quarter. Operating ratio during the quarter fell by 290 basis points to 59.9%.

Check back later for our full write up on this Canadian Pacific Railway earnings report later!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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