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Canadian Pacific Kansas City Limited CP is scheduled to report fourth-quarter 2024 results on Jan. 29, after market close.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The Zacks Consensus Estimate for CP’s fourth-quarter earnings has been revised downward by 4.4% in the past 60 days to 88 cents per share. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $2.74 billion, which indicates a fall of 1.1% compared with the fourth-quarter 2023 actuals.
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Canadian Pacific has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missing twice. The average beat is 1.5%.
Canadian Pacific Kansas City Limited Price and EPS Surprise
Canadian Pacific Kansas City Limited price-eps-surprise | Canadian Pacific Kansas City Limited Quote
Factors Likely to Have Influenced CP’s Q4 Performance
The sluggish freight demand scenario is likely to have hurt the top-line performance in the to-be-reported quarter. Our estimate for freight revenues is pegged at $3.65 billion, which indicates a fall of 1.3% compared with the fourth-quarter 2023 actuals.
Despite the declining fuel costs, which could provide some relief, bottom-line growth remains uncertain and may struggle to meet expectations in the to-be-reported quarter.We expect the average fuel price per gallon to decrease 13.1% year over year to $3.19 per gallon in the December-end quarter of 2024.
Apart from low fuel prices, Canadian Pacific's proactive cost-cutting initiatives and the resultant increased operational efficiency are expected to be reflected in fourth-quarter 2024 bottom-line results.
What Our Model Says About CP
Our proven model does not conclusively predict an earnings beat for Canadian Pacific this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
CP has an Earnings ESP of -3.74% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors might want to consider, as our model shows that these have the right combination of elements to beat fourth-quarter 2024 earnings.
American Airlines AAL has an Earnings ESP of +4.15% and sports a Zacks Rank #1 at present. AAL is set to release fourth-quarter 2024 results on Jan. 23.You can see the complete list of today’s Zacks #1 Rank stocks here.
AAL has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate thrice in the preceding four quarters and missing once. The average miss is 124.4%.