Canadian Pacific Kansas City Reports Third-Quarter 2024 Financial Results
Canadian Pacific Kansas City (CPKC) announced its financial results for the third quarter of 2024, showcasing a robust performance despite facing temporary challenges. The company reported revenues of $3.5 billion and a diluted earnings per share (EPS) of $0.90, with a core adjusted combined diluted EPS of $0.99.
Key Financial Metrics:
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimate |
|---|---|---|---|---|
| Total Revenue (Billion) | $3.5 | $3.3 | +6% | $3.59 |
| Diluted EPS | $0.90 | $0.84 | +7% | $0.98 |
| Core Adjusted Combined EPS | $0.99 | $0.92 | +8% | $1.05 |
The financial performance indicates a solid year-over-year growth in revenue and earnings per share, although it fell short of consensus estimates. The increase in revenue was driven by a 4% rise in freight volumes, measured in Revenue Ton-Miles (RTMs).
Segment Revenue Performance:
| Segment | Q3 2024 Revenue (Million) | Q3 2023 Revenue (Million) | YoY Change |
|---|---|---|---|
| Grain | $668 | $600 | +11% |
| Coal | $248 | $229 | +8% |
| Potash | $144 | $133 | +8% |
| Energy, Chemicals & Plastics | $712 | $643 | +11% |
| Automotive | $333 | $266 | +25% |
The revenue growth across major segments reflects CPKC's strategic initiatives and investments, particularly in the grain and automotive sectors, which saw significant increases.
Operational Data:
| Operational Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| FRA-reportable personal injury frequency | 0.85 | 1.02 | -17% |
| FRA-reportable train accident frequency | 1.27 | 1.38 | -8% |
The company reported improvements in safety metrics, with decreases in both personal injury and train accident frequencies.
Management Commentary: Keith Creel, President and CEO, expressed pride in the team's ability to overcome challenges and deliver on guidance. He emphasized the company's strategic initiatives and investments as key drivers for future growth and success.
Dividends and Share Repurchase Program: CPKC declared a quarterly dividend of $0.19 per share, consistent with previous quarters.
Forward Guidance: The company expects RTMs to increase by mid-single digits for the full year 2024 and anticipates double-digit growth in core adjusted combined diluted EPS compared to 2023.
Stock Price Movement: Following the earnings release, CPKC's stock experienced a slight decline of approximately 1.03%, reflecting the market's reaction to the earnings miss relative to expectations.
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