The Successful Investor Hotline – Friday, July 24, 2015

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $204.48, Toronto symbol CP, continues to benefit from lower fuel prices and an aggressive cost-cutting plan, but the slowing economy is hurting its freight volumes and revenue. In the three months ended June 30, 2015, the railway earned $404 million, up 8.9% from $371 million a year earlier. Per-share profits jumped 16.1%, to $2.45 from $2.11, on fewer shares outstanding. These results exclude unusual items, such as a foreign-exchange loss on CP’s U.S. dollar-denominated debt. On that basis, they just missed the consensus estimate of $2.46. Revenue fell 1.8%, to $1.65 billion from $1.68 billion, also falling short of the consensus forecast of $1.68 billion. CP saw revenue gains from shipping forest products (up 17.3%); chemicals (up 10.3%); potash (up 5.0%); other fertilizers (up 4.7%); international goods (up 2.0%); Canadian grain (up 1.2%); and coal (up 1.2%). But these gains were offset by lower shipments of crude oil (down 28.9%); automotive products (down 12.5%); U.S. grain (down 7.8%); metals…