Canadian National Railway Company (CN) (TSX: CNR) (NYSE: CNI) has announced its financial results for the third quarter ending September 30, 2024. Despite operational challenges, including wildfires and labor disruptions, the company demonstrated resilience in maintaining efficient operations.
Key Financial Metrics
| Metric | Q3 2024 (C$) | QoQ Change | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | 4.11 billion | +3% | + C$123M | $2.98 billion |
| Diluted EPS | C$1.72 | +2% | C$1.23 | $1.23 |
| Operating Income | C$1.515 billion | In line | ||
| Operating Ratio (%) | 63.1 | +1.1 points |
Interpretation : CN's financial performance for the quarter exceeded Wall Street consensus estimates, with revenue reaching C$4.11 billion. The company's earnings per share (EPS) aligned positively with market expectations. A stable operating income alongside a slight increase in operating ratio signifies CN’s effective management, despite external challenges.
Key Developments and Operational Highlights
- Revenue ton miles (RTMs) increased by 2%.
- Continued investment in a robust capital program valued at C$3.5 billion.
- A strategic focus on resource alignment with demand.
Summary of Company Officer Comments
Tracy Robinson, President and CEO, highlighted the company's agile operational response to recent challenges, reinforcing CN’s commitment to volume recovery and sustainable growth as 2024 closes. The strategic focus remains on optimizing operations and ensuring resource alignment with market demand.
Forward Guidance
CN maintains an expected adjusted diluted EPS growth in the low single-digit range for 2024. Over the 2024-2026 period, the company anticipates compound annual adjusted diluted EPS growth in the high single-digit range.
Stock Price Movement
Following the earnings release, CN's stock experienced a modest increase of approximately 1.13%.
Overall, CN's Q3 2024 results reflect the company's strong operational resilience and strategic focus on growth and efficiency. Future guidance underscores a consistent outlook, highlighting CN's commitment to long-term value creation.
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