The Successful Investor Hotline – Friday, January 30, 2015

Article Excerpt

CANADIAN NATIONAL RAILWAY CO., $83.72, Toronto symbol CNR, reported stronger-than-expected results this week. It also raised its dividend. In the three months ended December 31, 2014, CN’s revenue rose 16.8%, to $3.2 billion from $2.7 billion a year earlier. That beat the consensus forecast of $3.1 billion. The company saw higher revenue in all of its freight categories: metals and minerals (up 34.4%); petroleum and chemicals (up 20.5%); automotive (up 17.8%); grain and fertilizers (up 17.6%); forest products (up 10.6%); consumer and industrial goods (up 9.5%); and coal (up 7.5%). Earnings jumped 32.9%, to $844 million from $635 million. Per-share earnings rose 35.5%, to $1.03 from $0.76, on fewer shares outstanding, also beating the consensus estimate of $0.97. CN’s operating ratio improved to 60.7% from 64.8% a year ago. (Operating ratio is calculated by dividing regular operating costs by revenue. The lower the ratio, the better.) The company expects its earnings to rise at least 10%, from $3.76 a share in 2014 to $4.14 in…