Canadian National Railway Beats Analyst Estimates on EPS

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

The 10-second takeaway
For the quarter ended June 30 (Q2), Canadian National Railway met expectations on revenues and beat expectations on earnings per share.

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

Gross margins contracted, operating margins increased, net margins increased.

Revenue details
Canadian National Railway logged revenue of $2.53 billion. The 18 analysts polled by S&P Capital IQ predicted revenue of $2.55 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 $1.58. The 28 earnings estimates compiled by S&P Capital IQ predicted $1.53 per share. Non-GAAP EPS of $1.58 for Q2 were 7.5% higher than the prior-year quarter's $1.47 per share. GAAP EPS of $1.60 for Q2 were 13% higher than the prior-year quarter's $1.41 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 50.9%, 10 basis points worse than the prior-year quarter. Operating margin was 39.1%, 40 basis points better than the prior-year quarter. Net margin was 26.9%, 210 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $2.60 billion. On the bottom line, the average EPS estimate is $1.62.

Next year's average estimate for revenue is $10.26 billion. The average EPS estimate is $5.92.

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 $97.27.

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