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

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.

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