On the heels of the increased need for North American railroad stocks, Canadian Pacific announced record fourth-quarter and 2013 full-year financial results. Fourth-quarter net income soared to $82.0 million, or $0.47 per share, versus $15.0 million, or $0.08 per share, in the fourth quarter of 2012. Full-year net income was $875 million, or $4.96 per share, versus $484 million, or $2.79 per share, in 2012. For 2014, the company expects to report full-year revenue growth of six to seven percent and earnings-per-share (EPS) growth of 30%. (Source: “Canadian Pacific announces record fourth-quarter and 2013 full-year financial results,” Canadian Pacific Railway Limited web site, January 29, 2014.)
Union Pacific Corporation is another one of the railroad stocks that also reported record fourth-quarter and full-year results. Fourth-quarter net income jumped 20% year-over-year to $1.2 billion, or $2.55 per share; full-year net income climbed 12% to $4.4 billion, or $9.42 per diluted share. (Source: “Union Pacific Reports Best-Ever Quarterly and Full Year Results,” Union Pacific Corporation web site, January 23, 2014.)
For investors who happen to think we’ll continue to use oil and gas for the foreseeable future, oil pipeline stocks might be an alternative option to railroad stocks. With the squeeze on for more pipelines, energy infrastructure companies, such as Magellan Midstream, Energy Transfer Equity, or Targa Resources Partners LP (NYSE:NGLS), might be worth researching.
This article is brought to you courtesy of John Whitefoot from the Daily Gains Letter.