Raymond James Issues Pessimistic Outlook for CP Earnings

Canadian Pacific Kansas City Limited (NYSE:CP) (TSE:CP) – Raymond James reduced their Q3 2024 earnings estimates for Canadian Pacific Kansas City in a note issued to investors on Wednesday, October 16th. Raymond James analyst S. Hansen now anticipates that the transportation company will post earnings of $0.75 per share for the quarter, down from their prior forecast of $0.76. The consensus estimate for Canadian Pacific Kansas City’s current full-year earnings is $3.20 per share. Raymond James also issued estimates for Canadian Pacific Kansas City’s Q4 2024 earnings at $0.94 EPS and FY2025 earnings at $3.77 EPS.

Canadian Pacific Kansas City (NYSE:CP) (TSE:CP) last posted its earnings results on Tuesday, July 30th. The transportation company reported $1.05 earnings per share for the quarter, topping the consensus estimate of $0.74 by $0.31. Canadian Pacific Kansas City had a net margin of 24.45% and a return on equity of 8.77%. The business had revenue of $3.60 billion for the quarter, compared to analyst estimates of $3.58 billion. During the same quarter in the prior year, the firm earned $0.62 EPS. The firm’s quarterly revenue was up 13.5% compared to the same quarter last year.

CP has been the topic of a number of other reports. Jefferies Financial Group decreased their price target on Canadian Pacific Kansas City from $105.00 to $100.00 and set a “buy” rating on the stock in a research report on Wednesday, July 17th. Sanford C. Bernstein decreased their target price on Canadian Pacific Kansas City from $91.98 to $91.25 and set a “market perform” rating on the stock in a report on Wednesday, October 9th. Scotiabank raised Canadian Pacific Kansas City from a “sector perform” rating to a “sector outperform” rating in a report on Wednesday, July 10th. Citigroup initiated coverage on shares of Canadian Pacific Kansas City in a report on Wednesday, October 9th. They set a “buy” rating and a $97.00 price objective on the stock. Finally, Barclays boosted their target price on shares of Canadian Pacific Kansas City from $95.00 to $97.00 and gave the stock an “overweight” rating in a research note on Wednesday, September 25th. Nine analysts have rated the stock with a hold rating and twelve have given a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $97.90.

Canadian Pacific Kansas City Stock Performance

NYSE CP opened at $80.08 on Friday. Canadian Pacific Kansas City has a 1-year low of $68.92 and a 1-year high of $91.58. The company has a 50 day moving average of $82.83 and a 200-day moving average of $81.71. The company has a current ratio of 0.51, a quick ratio of 0.44 and a debt-to-equity ratio of 0.42. The firm has a market cap of $74.72 billion, a price-to-earnings ratio of 25.67, a PEG ratio of 2.21 and a beta of 0.96.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Choate Investment Advisors increased its holdings in Canadian Pacific Kansas City by 24.2% during the 1st quarter. Choate Investment Advisors now owns 72,010 shares of the transportation company’s stock worth $6,349,000 after purchasing an additional 14,037 shares in the last quarter. Encompass Capital Advisors LLC acquired a new stake in shares of Canadian Pacific Kansas City in the second quarter valued at approximately $11,810,000. Blue Zone Wealth Advisors LLC acquired a new position in Canadian Pacific Kansas City during the first quarter worth $4,160,000. Sumitomo Mitsui Trust Holdings Inc. increased its stake in Canadian Pacific Kansas City by 0.6% in the 1st quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 2,229,212 shares of the transportation company’s stock valued at $196,672,000 after buying an additional 13,727 shares during the last quarter. Finally, Maryland State Retirement & Pension System lifted its position in Canadian Pacific Kansas City by 53.0% during the 1st quarter. Maryland State Retirement & Pension System now owns 49,072 shares of the transportation company’s stock worth $4,100,000 after buying an additional 16,995 shares in the last quarter. 72.20% of the stock is owned by institutional investors and hedge funds.

Canadian Pacific Kansas City Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, October 28th. Shareholders of record on Friday, September 27th will be issued a $0.1373 dividend. The ex-dividend date of this dividend is Friday, September 27th. This represents a $0.55 annualized dividend and a yield of 0.69%. Canadian Pacific Kansas City’s dividend payout ratio (DPR) is presently 17.31%.

Canadian Pacific Kansas City Company Profile

Canadian Pacific Kansas City Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada, the United States, and Mexico. The company transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; merchandise freight, such as forest products, energy, chemicals and plastics, metals, minerals, consumer products, and automotive; and intermodal traffic comprising retail goods in overseas containers.