Topic: How To Invest

The Successful Investor Hotline – Friday, January 19, 2018

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $233.40, Toronto symbol CP, ships freight over a 22,000-kilometre rail network between Montreal and Vancouver, with links to hubs in the U.S. Midwest and Northeast. In the three months ended December 31, 2017, CP’s revenue rose 4.6%, to $1.71 billion from $1.64 billion a year earlier. That beat the consensus forecast of $1.37 billion. Higher revenue from shipping oil, metals, minerals and potash helped offset declines in fertilizers (other than potash), grain and automotive equipment. Earnings in the quarter rose 4.7%, to $469 million from $448 million. Due to fewer shares outstanding, per-share earnings gained 5.9%, to $3.22 from $3.04. Those figures exclude unusual items, among them a $527 million tax recovery stemming from changes to the U.S. tax code. On that basis, the latest earnings beat the consensus estimate of $3.20. The company continues to boost its efficiency with new locomotives and train tracks, and software to optimize its trainloads and speeds. Thanks to those investments, CP’s operating ratio…