Comment
0
Tweet
0
Print
RSS Feeds

Canadian National Railway Hits Estimates, But GAAP Results Lag Last Year's

Tuesday - 4/23/2013, 2:00am  ET

Canadian National Railway (TSX: CNR) reported earnings on April 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Canadian National Railway met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share increased slightly. GAAP earnings per share dropped significantly.

Margins contracted across the board.

Revenue details
Canadian National Railway reported revenue of $2.42 billion. The 22 analysts polled by S&P Capital IQ expected sales of $2.45 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.20. The 27 earnings estimates compiled by S&P Capital IQ anticipated $1.19 per share. Non-GAAP EPS of $1.20 for Q1 were 1.7% higher than the prior-year quarter's $1.18 per share. GAAP EPS of $1.28 for Q1 were 27% lower than the prior-year quarter's $1.75 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.4%, 250 basis points worse than the prior-year quarter. Operating margin was 31.6%, 220 basis points worse than the prior-year quarter. Net margin was 22.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $2.65 billion. On the bottom line, the average EPS estimate is $1.59.

Next year's average estimate for revenue is $10.36 billion. The average EPS estimate is $5.97.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Canadian National Railway is hold, with an average price target of $97.14.

If you're interested in transportation companies like Canadian National Railway, then you should check out our special report that features 3 companies who depend on, and invest in, that industry. Learn the basic financial habits of millionaires next door and get these 3 focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

This article was originally published as Canadian National Railway Hits Estimates, But GAAP Results Lag Last Year'son Fool.com

Copyright © 2009 The Motley Fool, LLC. All rights reserved.