Canadian Pacific Railway http://so-l.ru/tags/show/canadian_pacific_railway Tue, 20 Feb 2018 09:05:38 +0300 <![CDATA[Why Is Canadian Pacific (CP) Up 1.8% Since Its Last Earnings Report?]]> More than a month has gone by since the last earnings report for Canadian Pacific Railway Limited CP. Shares have added about 1.8% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to its next earnings release, or is CP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Fourth Quarter Earnings

Canadian Pacific's earnings (excluding $2.79 from non-recurring items) of $2.54 per share (C$3.22) were below the Zacks Consensus Estimate of $2.57. However, the bottom line improved 11.4% from the year-ago figure.

Quarterly revenues increased 10% year over year to $1,348.9 million (C$1,713) but fell short of the Zacks Consensus Estimate of $1,357.5 million. Freight revenues, which improved 4.4% year over year, accounted for bulk (97.3%) of the top line.

Notably, the company's freight segment consists of Grain (down 3%), Coal (up 1%), Potash (up 5%), Sulfur and Fertilizer (down 9%), Forest products (flat), Energy, Chemicals and Plastics (up 15%), Metals, Minerals and Consumer products (up 26%), Automotive (down 13%) and Intermodal (up 7%). In the reported quarter, total freight revenues per revenue ton miles (RTMs) were constant year over year. Also, freight revenues per car load remained unchanged year over year.

Operating income (on an adjusted basis) climbed 5% in the fourth quarter. Operating ratio (operating expenses as a percentage of revenues on an adjusted basis) came in at 56.1% compared with 56.2% a year ago.

2018 Forecast

While Canadian Pacific anticipates revenues to increase in mid-single digits for 2018, adjusted EPS is projected to rise in low double-digits. The company’s predictions for 2018 adjusted EPS are on the basis of C$11.39 — the adjusted EPS achieved in 2017.

Furthermore, the company expects effective tax rate in 2018 to lie between 24.5% and 25%. With the company’s continued investments in service, productivity and safety, it plans to invest $1.35-$1.5 billion in capital programs in the current year.

Liquidity

The company exited the final quarter of 2017 with cash and cash equivalents of C$338 million compared with C$164 million at the end of 2016. Long-term debt totaled C$7,413 million compared with C$8,659 million in December 2016.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. There has been one revision higher for the current quarter compared to one lower. While looking back an additional 30 days, we can see  upward momentum. There have been three moves up in the last two months.

 

VGM Scores

At this time, CP has a subpar Growth Score of D, however its Momentum is doing a bit better with a C. Following the exact same course, the stock was also allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stocks has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Zacks' style scores indicate that the company's stock is suitable for value and momentum investors.

Outlook

CP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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Canadian Pacific Railway Limited (CP): Free Stock Analysis Report
 
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Zacks Investment Research]]>
http://so-l.ru/news/y/2018_02_19_why_is_canadian_pacific_cp_up_1_8_sin Mon, 19 Feb 2018 12:17:00 +0300
<![CDATA[Canadian Pacific Railway declares CAD 0.5625 dividend]]> http://so-l.ru/news/y/2018_02_15_canadian_pacific_railway_declares_cad_0 Thu, 15 Feb 2018 21:58:40 +0300 <![CDATA[The Zacks Analyst Blog Highlights: Broadcom, Canadian National, CVS Health, Aflac and DXC Technolog]]> For Immediate Release

Chicago, IL – Feb 14, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Broadcom AVGO, Canadian National CNI, CVS Health CVS, Aflac AFL and DXC Technology DXC.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Tuesday’s Analyst Blog:

Top Analyst Reports for Broadcom, Canadian National and CVS Health

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Broadcom, Canadian National and CVS Health. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Buy-rated Broadcom’s shares have handily beaten the technology sector as well as the red-hot semiconductor space over the last one year, gaining +19%. Broadcom is benefiting from strong demand of its wireless solutions and expanding product portfolio, which makes it well-positioned to address the needs of rapidly growing technologies like IoT and 5G.

Broadcom has recently inked financing agreements with various institutions to fund Qualcomm’s proposed takeover. If completed, then this deal will make it the third-largest chipmaker, behind Intel and Samsung. The company also has strong ties with leading OEMs across multiple target markets that will help it to gain key insights into the requirements of customers.

Moreover, the upcoming launch of the next generation WiFi products is expected to be a growth driver for the segment. However, customer concentration, intensifying competition, integration risks due to frequent acquisitions and leverage balance sheet are key headwinds.

(You can read the full research report on Broadcom here >>>).

Shares of Canadian National have gained +7.4% over the last one year, but failed to outperform the Zacks Rail industry which gained +12.9% over the same period. Also, the company has underperformed Canadian Pacific Railway’s shares that have gained 17.6% in the same time period.

Adding to its woes, Canadian National reported lower-than-expected earnings per share and revenues in the fourth quarter of 2017. Deterioration in operating ratio owing to high labor and fuel costs also raise concerns. However, the volume growth witnessed in the quarter raises optimism.

The year-over-year increase in revenues and earnings per share bodes well for the stock as well. Moreover, the Zacks analyst is impressed by the 10% dividend hike announced by the company in January 2018.

(You can read the full research report on Canadian National here >>>).

CVS Health’s shares have been trading above the Zacks Drug Stores industry over the last year losing -11.2% vs. a decline of -16.7%. CVS Health ended the year 2017 on a solid note with a better-than-expected fourth-quarter performance.

The year-over-year growth in the top line was driven by a strong Pharmacy Services segment, benefiting from the upside in the specialty services. CVS Health’s strong 2018 PBM selling season is another upside. The Zacks analyst is also looking forward to an upbeat 2019 selling season.

Also, CVS Health’s plan to acquire Aetna might change the Healthcare landscape in the United States. On the flip side, the company has been suffering from softness in Retail/LTC business and a weak margin scenario. However, year-over-year Retail/LTC comparisons were still unimpressive. A weak margin scenario continues to put pressure on the bottom line.

(You can read the full research report on CVS Health here >>>).

Other noteworthy reports we are featuring today include Aflac and DXC Technology.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Canadian National Railway Company (CNI): Free Stock Analysis Report
 
Broadcom Limited (AVGO): Free Stock Analysis Report
 
Aflac Incorporated (AFL): Free Stock Analysis Report
 
CVS Health Corporation (CVS): Free Stock Analysis Report
 
DXC Technology Company. (DXC): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research]]>
http://so-l.ru/news/y/2018_02_14_the_zacks_analyst_blog_highlights_broad Wed, 14 Feb 2018 17:13:00 +0300
<![CDATA[Top Analyst Reports for Broadcom, Canadian National & CVS Health]]> Tuesday, February 13, 2018

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Broadcom (AVGO), Canadian National (CNI) and CVS Health (CVS). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Buy-rated Broadcom’s shares have handily beaten the technology sector as well as the red-hot semiconductor space over the last one year, gaining +19%. Broadcom is benefiting from strong demand of its wireless solutions and expanding product portfolio, which makes it well-positioned to address the needs of rapidly growing technologies like IoT and 5G.

Broadcom has recently inked financing agreements with various institutions to fund Qualcomm’s proposed takeover. If completed, then this deal will make it the third-largest chipmaker, behind Intel and Samsung. The company also has strong ties with leading OEMs across multiple target markets that will help it to gain key insights into the requirements of customers.

Moreover, the upcoming launch of the next generation WiFi products is expected to be a growth driver for the segment. However, customer concentration, intensifying competition, integration risks due to frequent acquisitions and leverage balance sheet are key headwinds.

(You can read the full research report on Broadcom here >>>).

Shares of Canadian National have gained +7.4% over the last one year, but failed to outperform the Zacks Rail industry which gained +12.9% over the same period. Also, the company has underperformed Canadian Pacific Railway’s shares that have gained 17.6% in the same time period.

Adding to its woes, Canadian National reported lower-than-expected earnings per share and revenues in the fourth quarter of 2017. Deterioration in operating ratio owing to high labor and fuel costs also raise concerns. However, the volume growth witnessed in the quarter raises optimism.

The year-over-year increase in revenues and earnings per share bodes well for the stock as well. Moreover, the Zacks analyst is impressed by the 10% dividend hike announced by the company in January 2018.

(You can read the full research report on Canadian National here >>>).

CVS Health’s shares have been trading above the Zacks Drug Stores industry over the last year losing -11.2% vs. a decline of -16.7%. CVS Health ended the year 2017 on a solid note with a better-than-expected fourth-quarter performance.

The year-over-year growth in the top line was driven by a strong Pharmacy Services segment, benefiting from the upside in the specialty services. CVS Health’s strong 2018 PBM selling season is another upside. The Zacks analyst is also looking forward to an upbeat 2019 selling season.

Also, CVS Health’s plan to acquire Aetna might change the Healthcare landscape in the United States. On the flip side, the company has been suffering from softness in Retail/LTC business and a weak margin scenario. However, year-over-year Retail/LTC comparisons were still unimpressive. A weak margin scenario continues to put pressure on the bottom line.

(You can read the full research report on CVS Health here >>>).

Other noteworthy reports we are featuring today include Aflac (AFL), Marathon Petroleum (MPC) and DXC Technology (DXC).

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Mark Vickery

Senior Editor

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Featured Reports

Hershey (HSY) Fights Sales Slump With Cost Saving Initiatives

The Zacks analyst views Hershey's cost cutting initiatives and productivity investments as effective hedges against a weak top-line performance.

Marathon (MPC) to Benefit from Accretive Dropdown to MPLX

The Zacks analyst believes that Marathon Petroleum's decision to drop down assets worth $8.1 billion to its midstream partnership MPLX will boost its cash flows, fueling buybacks and higher dividends.

Solid Balance Sheet, Strong U.S. Business Aids Aflac (AFL)

Per the Zacks analyst, Aflac U.S. segment continues to perform strongly and have led to top line growth.

Diversified Revenues Aid Fifth Third (FITB), High Costs A Woe

The covering analyst believes Fifth Third's growth has been aided by diversified revenue sources, easing margin pressure and rising deposit balances.

Seagate (STX) Banks on NAND Supply Deal & Product Rollouts

Per the Zacks analyst, Seagate's recent NAND-supply deal with Toshiba will help it in developing advanced HDD, SSD and hybrid solutions.

Nasdaq (NDQA) to Grow On Higher Non-Transaction Revenue Base

Per the Zacks analyst Nasdaq is set to grow as it accelerates growth via organic means and prudent acquisitions.

DXC Technology (DXC) Gains From Merger, Alliances & Buyouts

Per the Zacks analyst, merger synergies, partnerships with AT&T and HCL and acquisitions of the likes of Tribridge and Logicalis SMC are fueling DXC Technology's growth.

New Upgrades

Project CONNECT to Drive Columbia Sportswear (COLM) Results

Per the Zacks analyst, Columbia Sportswear is set to gain from Project CONNECT. This aims at enhancing revenues and marketing processes, capturing cost of sales efficiencies, and lowering SG&A costs.

Turnaround Efforts, International Revenues Aid Viacom (VIAB)

The Zacks analyst is impressed by the company's performance on the international front. Efforts to revive its fortunes under CEO Bob Bakish are also impressive.

Expanding Clientele, Portfolio Strength Drives Fiserv (FISV)

Per the Zacks analyst, Fiserv benefits from its expanding customer base, strong product portfolio and higher recurring revenues.

New Downgrades

Domtar (UFS) Remains Plagued by Continued Brexit Woes

Per the Zacks analyst, the revamped market dynamics following Brexit are expected to affect firms like Domtar that has significant presence in the U.K., lowering its productivity.

High Rental Unit Supply to Hurt Mid-America Apartment (MAA)

Per the Zacks analyst, elevated supply of residential units in Mid-America Apartment's key markets is expected to moderate rent growth and affect occupancy levels of its properties.

Volatile Spot Market Prices to Hurt American Electric (AEP)

The Zacks analyst believes volatile power prices in spot market and lower than expected rate revision for regulated utilities could adversely impact American Electric's margins and revenues


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Marathon Petroleum Corporation (MPC): Free Stock Analysis Report
 
DXC Technology Company. (DXC): Free Stock Analysis Report
 
CVS Health Corporation (CVS): Free Stock Analysis Report
 
Canadian National Railway Company (CNI): Free Stock Analysis Report
 
Broadcom Limited (AVGO): Free Stock Analysis Report
 
Aflac Incorporated (AFL): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research]]>
http://so-l.ru/news/y/2018_02_14_top_analyst_reports_for_broadcom_canadi Wed, 14 Feb 2018 01:51:00 +0300
<![CDATA[Frontrunning: February 1]]>
  • Republican memo likely to be released Thursday -Trump administration official (Reuters)
  • Ex-Trump Aide Page Was on U.S. Counterintelligence Radar for Years (WSJ)
  • FBI Knew of Clinton Emails Weeks Before Alerting Congress (WSJ)
  • Facebook Reversal Lifts Markets, Though FAANG Jitters Linger (BBG)
  • How trade disputes could hurt U.S. pork exports (Reuters)
  • Dollar weakens after Fed bounce proves short-lived (Reuters)
  • Bitcoin skids to lowest since November after worst month in three years (Reuters)
  • Worries Grow That the Price of Bitcoin Is Being Propped Up (NYT)
  • How GE Went From American Icon to Astonishing Mess (BBG)
  • Deluge of Influenza Patients Forces Hospitals to Creatively Cope (WSJ)
  • A $1.5 Trillion Question in Trump’s Public Works Plan: Who Pays?  (BBG)
  • Insurers gingerly test bitcoin business with heist policies (Reuters)
  • Bored With Banking, This Former Citi Trader Went Full Crypto (BBG)
  • U.S. says military option not believed to be close for solving North Korea crisis (Reuters)
  • How J.D. Power Was Acquired by a Chinese Company Shrouded in Mystery (WSJ)
  • A Bitcoin Conference Rented a Miami Strip Club—And Regretted It (BBG)
  • Capitec Report: Was There Insider Trading? (Huffpost)
  • Overnight Media Digest

    WSJ

    - UK Prime Minister Theresa May arrived in Beijing on Wednesday to beat the drum for deepening trade ties and showcase her country's global ambitions, a visit clouded by simmering discord at home over her handling of Brexit negotiations. on.wsj.com/2no6mvJ

    - Pandora Media Inc will lay off 5 percent of its workforce as the internet radio company tries to rein in costs while investing in advertising technology and efforts to woo back listeners. on.wsj.com/2nqrxgK

    - German media giant Bertelsmann SE on Wednesday announced it is seeking to unload one of its largest businesses which has struggled to grow in a full or partial sale. on.wsj.com/2nqiPyK

    - The FBI publicly urged U.S. President Donald Trump not to release a classified memo, escalating a simmering dispute over Republican allegations of improper surveillance in the probe examining whether Russia interfered in the 2016 election. on.wsj.com/2nnHSTq

    - Qualcomm Inc said Wednesday that it had reached a multiyear deal with Samsung Electronics Co Ltd that covers various areas including mobile devices. on.wsj.com/2npLe8i

    - Federal Reserve Chairwoman Janet Yellen concluded her final policy meeting Wednesday by holding interest rates steady and leaving it to her successor to decide whether to lift them more quickly to prevent the economy from overheating. on.wsj.com/2nriYSH

     

    FT

    - European Union banks will face the toughest “stress test” of their ability to withstand theoretical shocks this year, including the impact of Britain’s exit from the bloc, the EU’s banking watchdog said on Wednesday.

    - Brenda Fitzgerald, head of the leading U.S. public health agency, has resigned because of financial conflicts of interest that documents showed included purchases of tobacco and healthcare stocks while in office.

    - Britain’s government said on Wednesday it would hand over to parliament a leaked report that suggested Brexit would hurt the economy, trying to deflect accusations that ministers are badly prepared for leaving the European Union.

     

    NYT

    - Uber Technologies Inc will let certain users in San Francisco reserve pedal-assist electric bicycles through its app, with the idea that people will see the bicycles as a cheaper and faster alternative. (nyti.ms/2DRbkr7)

    - Xerox Corp on Wednesday said that it would combine operations with Fujifilm Holdings Corp of Japan. Under the deal, Fujifilm will own just over 50 percent of the Xerox business and Xerox will become part of an existing Fuji Xerox joint venture. (nyti.ms/2DRcNxD)

    - The U.S. Environmental Protection Agency Administrator Scott Pruitt on Wednesday filed the legal documents required to suspend the 2015 Waters of the United States rule for two years, while it works to repeal and replace the Obama-era clean water regulation. (nyti.ms/2E1Sv7Y)

    - German carmakers BMW and Daimler AG on Wednesday said that they had taken action against executives involved in an organization that sponsored emissions experiments on monkeys, as the companies tried to squelch a public outcry that threatens to tarnish the image of Germany's most important exports. (nyti.ms/2nuVI5y)

     

    Canada

    THE GLOBE AND MAIL

    ** A labour arbitrator has overturned the firing of a Canadian Pacific Railway Ltd conductor involved in the collision of two trains in midtown Toronto in 2016, saying the man's culpability was mitigated by the company's failure to provide adequate experience. tgam.ca/2BJdcQD

    ** Statistics Canada reported that the country's November real gross domestic product grew 0.4 percent month over month, the biggest one-month rise since May. tgam.ca/2BIG3ER

    NATIONAL POST
    ** Boeing Co's chief executive Dennis Muilenburg said the company is continuing discussions about a potential tie-up with Embraer SA, a deal some analysts say is more likely after a top U.S. trade body unexpectedly voted against the American aerospace company last week. bit.ly/2BIXm8w

    ** Aleksandr Abramov, non-executive chairman of Evraz Plc and Aleksandr Frolov, its CEO, are among people named in a list of wealthy Russians close to the Kremlin published by the United States. bit.ly/2BHmhtb

     

    Britain

     

     

     

    ]]>
    http://so-l.ru/news/y/2018_02_01_frontrunning_february_1 Thu, 01 Feb 2018 15:58:22 +0300
    <![CDATA[Company News For Jan 22, 2018]]>
  • Shares of 1st Source Corporation SRCE gained 2.2% after reporting fourth quarter 2017 revenues of $74 million, surpassing the Zacks Consensus Estimate of $71 million
  • Citizens Financial Group, Inc.’s CFG shares rallied 2.3% after posting fourth quarter 2017 earnings per share of $0.71, surpassing the Zacks Consensus Estimate of $0.67
  • Mellanox Technologies, Ltd.‘s MLNX shares increased 1% after reporting fourth quarter 2017 earnings per share of $0.48, surpassing the Zacks Consensus Estimate of $0.35
  • Shares of Canadian Pacific Railway Limited CP gained 2.5% after reporting fourth quarter 2017 earnings per share of $2.54, higher than $2.28 a share from the year-ago quarter

  • Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
     
    Canadian Pacific Railway Limited (CP): Free Stock Analysis Report
     
    1st Source Corporation (SRCE): Free Stock Analysis Report
     
    Mellanox Technologies, Ltd. (MLNX): Free Stock Analysis Report
     
    Citizens Financial Group, Inc. (CFG): Free Stock Analysis Report
     
    To read this article on Zacks.com click here.
     
    Zacks Investment Research]]>
    http://so-l.ru/news/y/2018_01_22_company_news_for_jan_22_2018 Mon, 22 Jan 2018 18:03:00 +0300
    <![CDATA[Will High Volumes Aid Canadian Pacific's (CP) Q4 Earnings?]]> Canadian Pacific Railway Limited CP is scheduled to report fourth-quarter 2017 results on Jan 18 after the market closes.

    Last quarter, the company reported in-line earnings and lower-than-expected revenues. However, both the bottom and the top line improved substantially from the year-ago figures.

    Let’s see how things shape up this earnings season.

    Why a Likely Positive Surprise?

    Our proven model shows that Canadian Pacific is likely to beat on earnings this quarter on the back of a perfect combination of the following two key ingredients:

    Zacks ESP: Canadian Pacific has an Earnings ESP of +0.27%. A positive Zacks ESP serves as an indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

    Zacks Rank: Canadian Pacific carries a Zacks Rank #3 (Hold). Note that stocks with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have significantly higher chances of beating estimates.

    Conversely, Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is witnessing negative estimate revisions.

    Canadian Pacific Railway Limited Price and EPS Surprise

     

    Canadian Pacific Railway Limited Price and EPS Surprise

    Canadian Pacific Railway Limited price-eps-surprise | Canadian Pacific Railway Limited Quote

    What is Driving the Better-than-Expected Earnings?

    The company’s cost-cutting efforts are expected to drive its bottom-line growth in the fourth quarter. This is likely to boost its operating ratio as well, similar to the previous quarter.

    Additionally, increased volumes are anticipated to buoy results in the quarter. Notably, the company raised guidance for 2017 on the back of increased volumes. Canadian Pacific now expects a double-digit rise in adjusted earnings per share for 2017 compared with C$10.29 in 2016.

    The improved coal scenario is a further positive, which is likely to benefit the top line in the to-be-reported quarter.

    Moreover, the company’s initiatives to reward investors through share buybacks and hiked dividend payments are impressive.

    However, declining revenues at the automotive and intermodal unit may hurt results in the quarter.

    Other Stocks to Consider

    Investors also interested in the broader Transportation sector may check out American Airlines Group, Inc. AAL, Spirit Airlines, Inc. SAVE and JetBlue Airways Corporation JBLU stocks comprising the right combination of elements to surpass estimates this time around:

    American Airlines has an Earnings ESP of +1.27% and a Zacks Rank of 3. The company will report fourth-quarter earnings on Jan 25.

    Spirit Airlines has an Earnings ESP of +2.39% and is a Zacks #3 Ranked player. The company is scheduled to report fourth-quarter earnings on Feb 6. You can see the complete list of today’s Zacks #1 Rank stocks here.

    JetBlue has an Earnings ESP of +1.40% and the stock is a #3 Ranked player. The company will report fourth-quarter earnings on Jan 25.

    Wall Street’s Next Amazon

    Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

    Click for details >>


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    JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
     
    Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
     
    American Airlines Group, Inc. (AAL): Free Stock Analysis Report
     
    Canadian Pacific Railway Limited (CP): Free Stock Analysis Report
     
    To read this article on Zacks.com click here.
     
    Zacks Investment Research]]>
    http://so-l.ru/news/y/2018_01_15_will_high_volumes_aid_canadian_pacific_s Mon, 15 Jan 2018 15:56:00 +0300
    <![CDATA[Компания CSX назвала имя нового CEO]]> http://so-l.ru/news/y/2017_12_25_finam_ru_novosti_razvi_kompaniya_csx_na Mon, 25 Dec 2017 10:29:00 +0300 <![CDATA[Компания CSX назвала имя нового CEO]]> http://so-l.ru/news/y/2017_12_25_kompaniya_csx_nazvala_imya_novogo_ceo Mon, 25 Dec 2017 10:25:27 +0300 <![CDATA[Why is Kansas City Southern Up More Than 30% Year to Date?]]> Shares of Kansas City Southern KSU have gained 30.9%, outperforming the Zacks Rail industry’s rally of 28.4% on a year-to-date basis.

    Reasons Behind the Outperformance

    Kansas City Southern seems to benefit from an improvement in carload volumes. This is evident from the company’s third-quarter 2017 results, which were aided by a 3% rise in overall carload volumes.

    Moreover, Kansas City Southern’s operating ratio (operating expenses as a percentage of revenues) came in at 64.4% in the third quarter compared with 66.9% reported a year ago. Improvement in this key metric is a positive for the company. The lesser the value of operating ratio the better as it implies that more cash is available to the company to reward shareholders through dividends/buybacks.

    In August, the company’s board of directors approved of a new share repurchase program worth $800 million. This share repurchase plan replaces the $500 million program, which was announced in 2015 and completed in the second quarter of 2017. The fresh authorization also includes a $200 million Accelerated Share Repurchase program. Simultaneously, the company increased its quarterly dividend in excess of 9%.

    In fact, Kansas City Southern is not the only railroad operator to have increased its dividend payout. Fellow railroad operators like Union Pacific Corporation UNP, Canadian Pacific Railway Ltd. CP and Canadian National Railway CNI have also raised their dividend payouts this year.

    Additionally, Kansas City Southern like most of its peers stands to benefit from an improvement in intermodal volumes.

    Estimate Revisions & Zacks Rank

    Upward estimate revisions reflect optimism in a stock’s prospects. Kansas City Southern scores impressively on this front as well. The stock has seen the Zacks Consensus Estimate for current-quarter and current-year earnings being revised 1.5% and 0.6% upward, respectively, over the last 90 days.

    The above bullish factors are reflected in the company’s Zacks Rank #2 (Buy), implying that it is expected to outperform the broader U.S. equity market over the next one to three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
     

    Zacks Editor-in-Chief Goes "All In" on This Stock

    Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.

    Download it free >>


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    To read this article on Zacks.com click here.]]>
    http://so-l.ru/news/y/2017_12_19_why_is_kansas_city_southern_up_more_than Tue, 19 Dec 2017 18:17:00 +0300
    <![CDATA[CEO компании CSX уходит в отпуск по состоянию здоровья]]> http://so-l.ru/news/y/2017_12_15_finam_ru_novosti_razvi_ceo_kompanii_cs Fri, 15 Dec 2017 12:46:00 +0300 <![CDATA[CEO компании CSX уходит в отпуск по состоянию здоровья]]> http://so-l.ru/news/y/2017_12_15_ceo_kompanii_csx_uhodit_v_otpusk_po_sost Fri, 15 Dec 2017 12:42:30 +0300 <![CDATA[Zacks Industry Outlook Highlights: Union Pacific, Norfolk Southern, Kansas City Southern, Canadian Pacific Railway and Canadian National Railway]]> For Immediate Release

    Chicago, IL – Dec 5, 2017 – Today, Zacks Equity Research discusses the Industry: Railroads, Part 1, including Union Pacific Corp. UNP, Norfolk Southern Corp. NSC, Kansas City Southern KSU, Canadian Pacific Railway Ltd. CP and Canadian National Railway Ltd. CNI.

    Industry: Railroads, Part 1

    Link: https://www.zacks.com/commentary/139305/railroad-industry-outlook---december-2018

    Despite challenges posed by the recent hurricanes (Harvey, Irma and Maria), railroads performed quite well in the third quarter of 2017. In fact, key sector players like Union Pacific Corp., Norfolk Southern Corp. and Kansas City Southern outperformed (both with respect to the top and bottom lines) in the third quarter on the back of volume growth.

    All the above-mentioned companies carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

    The sector’s impressive performance is not just limited to the third quarter. Stocks in the railroad space have in fact witnessed good times since the commencement of 2017 after struggling for the past couple of years. The 29.3% improvement in the Dow Jones U.S. Railroads Index on a year-to-date basis bears testimony to bullishness surrounding railroads.

    Factors Contributing to the Turnaround

    In fact, improvement in the prospects of key units like coal and intermodal has been benefiting railroads since the beginning of this year. 

    Particularly with the Trump presidency, the coal industry is seeing better days. The President is aiming to revive the industry by relaxing regulations which were hurting its prospects. He has started to act on his promises made during the campaigning phase.

    The rise in natural gas prices is also favorable to demand for coal. Moreover, according to the U.S. Energy Information Administration (EIA), coal production in the United States will improve in 2017 and 2018. Since revenues from coal contribute significantly to railroads’ top line, any positive development for the commodity means good news for the sector.

    Coal apart, the scenario pertaining to another key source of revenues for railroads, intermodal, has improved by leaps and bounds this year. In fact, growth relating to intermodal volumes reached the highest levels in three years, in the third quarter of 2017.

    Recovery of the U.S. economy has also worked in favor of railroads. In fact, in the third quarter, the domestic economy expanded at an impressive annual rate of 3%, according to the latest report from the Commerce Department. The reading was above the consensus estimate of 2.6%, despite the turbulence caused by hurricanes.

    This is also the first time since 2014 that the U.S. economy expanded at 3% or above (on an annual basis) for two consecutive quarters. This supports the air of optimism surrounding railroads. Generally, a buoyant domestic economy results in an uptick in rail shipments of goods across the United States.

    Good Times Likely to Continue in Q4

    Railroad operations were severely hampered in the third quarter due to the natural calamities as important rail lines were severely damaged. However, operations at railroads have returned to normal. Consequently, the stocks are likely to perform impressively in the fourth quarter of 2017 driven by volume growth. Key units such as intermodal and coal are expected to continue performing well, and thereby aid results.

    Railroads should continue to see an improvement pertaining to another key metric — operating ratio (operating expenses as a percentage of revenues) — in the fourth quarter of 2017. Thelesser the value of operating ratio the better, as it implies that more cash is available to the company to reward shareholders through dividends/buybacks.

    Riding on their solid financial health, many railroads including the likes of Union Pacific Kansas City Southern, Canadian Pacific Railway Ltd. and Canadian National Railway Ltd. have hiked their respective quarterly dividend payouts this year.

    Some Roadblocks to Be Careful About in Q4

    Despite the positives, there are a few factors that might hurt results in the fourth quarter. Evidently, weakness in the automotive sector had hurt the results of major railroads in the third quarter, due to sluggish vehicle production in the United States.

    The scenario is expected to remain gloomy in the final quarter of 2017 as well. In fact, sales of U.S. light vehicle sales for 2017 are projected at 17 million units, down approximately 3% on a year-over-year basis. With the automotive sector accounting for a significant chunk of their revenues, softness in automotive volumes might hurt railroads.

    Moreover, rising operating expenses due to the uptick in fuel prices are likely to limit bottom-line growth of railroads in the fourth quarter.

    Strong Stocks that Should Be in the News

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    Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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    Kansas City Southern (KSU): Free Stock Analysis Report
     
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    http://so-l.ru/news/y/2017_12_05_zacks_industry_outlook_highlights_union Tue, 05 Dec 2017 17:37:00 +0300
    <![CDATA[Canadian Pacific Railway declares CAD 0.5625 dividend]]> http://so-l.ru/news/y/2017_07_17_canadian_pacific_railway_declares_cad_0 Wed, 22 Nov 2017 21:04:17 +0300 <![CDATA[What's in Store for Canadian Pacific (CP) in Q3 Earnings?]]> Canadian Pacific Railway Limited CP is scheduled to report third-quarter 2017 results on Oct 17, after the market closes.

    Last quarter, the company came up with better-than-expected earnings but lower-than-expected revenues. Earnings (on an adjusted basis) improved 29.6% from the year-ago figure, while revenues increased 8.5% year over year.

    Let’s see how things shape up this earnings season.

    Factors at Play

    The back-to-back hurricanes (Harvey and Irma) have been a major dampener to railroad operations and Canadian Pacific was no exception. Rise in fuel costs from natural disasters have the potential to hurt the bottom line in the third quarter.

    With the automotive sector accounting for a significant revenue volume, softness in the same might limit the bottom-line growth in the soon-to-be-reported quarter.

    Additionally, decreased revenues in other key segments like Sulfur and Fertilizer and Forest Products might further hurt results in the quarter.

    Also, Canadian Pacific is a highly leveraged company. The stock has seen the Zacks Consensus Estimate for current-quarter earnings being revised 2.9% downward over the last 60 days. This, in turn, reflects the negative sentiment surrounding the stock.

    However, the company’s cost-controlling efforts are expected to aid results in the quarter. Plus, its attempts to reward investors through share buybacks and raised dividend payments are impressive.

    Earnings Whispers

    Our proven model does not conclusively show that Canadian Pacific CSX is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as elaborated below.

    Zacks ESP: Canadian Pacific has an Earnings ESP of -0.98% as the Most Accurate estimate is pegged at $2.32 per share, marginally lower than the Zacks Consensus Estimate of $2.34. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

    Zacks Rank: Canadian Pacific currently carries a Zacks Rank #3, which increases the predictive power of ESP. However, combined with the company’s negative ESP leaves surprise prediction inconclusive.

    We caution against all Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.

    Stocks to Consider

    Investors interested in the broader Transportation sector may look into stocks worth considering like C.H. Robinson Worldwide, Inc. CHRW, Norfolk Southern Corporation NSC and Union Pacific Corporation UNP. For our model shows them to possess the right combination of elements to beat on earnings in their next releases.

    C.H. Robinson has an Earnings ESP of +0.06% and a Zacks Rank #3. The company will report third-quarter 2017 results on Oct 31.

    Norfolk Southern has an Earnings ESP of +0.87% with a solid Zacks Rank of 3. The company will report third-quarter 2017 results on Oct 25. You can see the complete list of today’s Zacks #1 Rank stocks here.

    Union Pacific has an Earnings ESP of +0.05%. This #3 Ranked company will release third-quarter 2017 earnings numbers on Oct 26.

    4 Stocks to Watch after the Massive Equifax Hack

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    Union Pacific Corporation (UNP): Free Stock Analysis Report
     
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    To read this article on Zacks.com click here.
     
    Zacks Investment Research]]>
    http://so-l.ru/news/y/2017_10_13_what_s_in_store_for_canadian_pacific_cp Fri, 13 Oct 2017 16:52:00 +0300
    <![CDATA[Canadian Pacific Railway stock price target raised to $262 from $216 at J.P. Morgan]]> ]]> http://so-l.ru/news/y/2017_10_12_canadian_pacific_railway_stock_price_tar Thu, 12 Oct 2017 14:27:25 +0300 <![CDATA[Canadian Pacific Railway upgraded to overweight from neutral at J.P. Morgan]]> ]]> http://so-l.ru/news/y/2017_10_12_canadian_pacific_railway_upgraded_to_ove Thu, 12 Oct 2017 14:27:10 +0300 <![CDATA[Back-to-Back Weekly Gains for the Dow, S&P]]> It wasn’t as stellar a week as last, but we should take what we can get in a historically difficult month that’s besieged with domestic and international concerns. The Dow managed a second straight positive week by climbing 0.4%, while the S&P inched forward with a 0.1% advance. The NASDAQ struggled with a slumping Apple all week and finished with a slip of 0.3%. 

    All in all though, the market held up admirably in an eventful week. The Fed announcement on Wednesday signaled a rate hike in December and outlined its plan to start “unwinding” its $4.5 trillion balance sheet. Meanwhile, North Korea is promising more saber-rattling in the wake of President Trump’s U.N. speech.  

    "A few weeks ago, geopolitical tensions stemming from North Korea would have sent the market into a tailspin. At the very least, it would have been good for a jump in the volatility index," said Dave in Momentum Trader. "Perhaps it’s evolving into the story of “The Boy Who Cried Wolf” as new threats for a hydrogen bomb over the Pacific did little to deter markets." 

    Despite such challenges, the S&P is still hanging out over 2500 after climbing 0.06% to 2502.2 on Friday, while the NASDAQ increased 0.07% to 6426.9. However, the Dow, which saw its seven-session all-time high streak snapped on Wednesday, was down 0.04% to 22,349.6 today. 

    The portfolios had been quiet the past two days, but they sprung back into action to finish out the week. Counterstrike added a casino company and sold another name for a nearly 10% return. Income Investor bought one of the most well-known semiconductor names after it raised its dividend and buyback plan. Finally, Stocks Under $10 picked up a health club company with a solid earnings history. Read more below: 

    Today's Portfolio Highlights: 

    Counterstrike: When Jeremy first bought Wynn Resorts (WYNN) with a half position back in late July, he was expecting this best-in-breed casino to get up to $145. Now, the editor sees it breaking over $150, especially since the upcoming “Golden Week” Chinese holiday should be a big boon for Macau. Therefore, with momentum continuing to be strong for both the stock and the sector, Jeremy added another 7% on Friday to bring WYNN up to a full position. 

    In other news, Canadian Pacific Railway (CP) has only been in the portfolio for about a month-and-a-half, but it has already gained 9.6% in that time. This comes as a pleasant surprise to Jeremy, who decided to cash in that gain on Friday by selling the railroad company. Read the full write-up for more on all of today’s moves. 

    Income Investor: There’s a lot to like about Texas Instruments (TXN), especially after reporting excellent second quarter results that included better-than-expected earnings and revenues. Plus, this global semiconductor company is a Zacks Rank #1 (Strong Buy) that’s part of a space in the top 1% of the Zacks Industry Rank. But what really caught Neena’s attention was that TXN increased its quarterly dividend by 24% this week and plans to boost its buybacks by $6 billion. As announced yesterday, the editor added TXN to the portfolio on Friday. The full write-up has more. 

    Stocks Under $10: Town Sports (CLUB) is a health club company that was a big winner for Brian Bolan in the past. The editor is hoping for more of the same by adding the stock to the portfolio on Friday, and he’s got reason to be optimistic. CLUB has beaten the Zacks Consensus Estimate in each of the last four quarters with an average surprise of 52%. Furthermore, earnings estimates have been moving higher of late, making the stock a Zacks Rank #2 (Buy). Read a lot more about this new addition in the complete commentary. 

    Options Trader: "The Dow, the S&P, and the Small-Cap Russell 2000 Index, all closed higher again this week, making it two weeks in a row. (They also, once again, made new all-time high closes in the process.) 

    "The Nasdaq just missed out on another weekly gain, albeit just barely. But they remain near their all-time highs, and actually made new all-time highs during the week, but just couldn’t hold on by week’s end. 

    "When I think of the market, words like resilient, impressive, historic, and strength come to mind. 


    "I’m fully aware of the obstacles this market has in front of it...but for now, the market continues to focus on the economy and record corporate profits, as it should." -- Kevin Matras 

    Have a Great Weekend,  
    Jim Giaquinto

    Recommendations from Zacks' Private Portfolios:

    Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>

     
    Zacks Investment Research]]>
    http://so-l.ru/news/y/2017_09_25_back_to_back_weekly_gains_for_the_dow_s Mon, 25 Sep 2017 08:23:23 +0300
    <![CDATA["Hunter Harrison Is Out Of Control" - What's Really Going On At CSX?]]> Authored by William Vantuono via RailwayAge.com,

    Hunter Harrison, what exactly is going on at CSX? I’m hearing lots of voices. They’ve become loud and frequent and as such are nearly impossible to ignore. They’re the voices of railroaders, from the executive to the train and engine service level. They’re former and present CSX employees. They’re people who have worked for you at other railroads. And they’re all saying basically the same thing: That the changes you are making at CSX aren’t the right thing to do, or aren’t working.

    Herewith is a collection of accounts from various sources. Some of it is hearsay. Some of it has been published. Suffice to say that all these sources are credible. I name no names. I pass no judgment. My opinion, as a railroad industry trade journalist with 25 years of experience but who has never lined a turnout, pulled a coupler pin, laid a section of rail or devised a service plan, is irrelevant.

    So, I leave it up to you, the reader, to draw your own conclusions. I’ll share one opinion: Much of this material may be disturbing to you. And based upon this publication’s previous experiences with Hunter Harrison—a two-time Railroader of the Year—it’s disappointing, even sad (though he is no less deserving today of these past awards as when they were given, in 2015 and 2002). Take these bullet points for what they’re worth—with a grain of salt, or a bottle of Pepto-Bismol.

    First, what the newspapers have been reporting:

    The July 19, 2017 Jacksonville Business Journal: “Despite a strong second quarter for CSX Corp., the company’s stock is plummeting after a bombshell revelation from new CEO Hunter Harrison during the Wednesday morning earnings call. Harrison, whose arrival at CSX led the stock to hitting an all-time high, told analysts during a conference call that his tenure with the company would be short, and that he sees his role as an interim leader to get the company to solid footing before he exits.

    “‘I’m a short-timer here,’ said Harrison. ‘I’m the interim person that’s going to try to get this company to the next step and good foundation.’ He’s not the only railroad employee who might not be there for long: During the call, the CEO said up to 700 more layoffs may be on the way.

     

    “Harrison’s statement, combined with declines in overnight trading, has overshadowed the railroad company’s good second quarter.

     

    “‘There’s a lot to like about the results,’ Edgar Jones analyst Dan Sherman told the Business Journal, who noted [an] 8% drop in expenses since the [previous] quarter. The drop in expenses is the result of CSX thinning its locomotive fleet, workforce and hump yards, and Harrison said more cuts are still to come. The fleet has been trimmed by 900 locomotives and could be trimmed 100 more. The workforce has lost 2,300 employees and could lose 700 more. The railroad started the year with 12 hump yards and could end with three, Harrison estimated. Other efficiencies include lengthening trains and bringing contracted work back in house. Harrison said these operational efficiencies would bear fruit in future quarters.

     

    “‘If we make the improvements we make, we’ll be rewarded, and if we don’t, we won’t,’ he said. Harrison acknowledged the difficulties of the cuts his company has made and addressed the ‘culture of fear’ some have accused him of creating. ‘We can’t carry dead weight,’ he said. ‘Everybody has to do their job. Everybody has to do their part.’ Harrison said it is not his goal to create a culture of fear, but rather create a culture where everyone can add value to the company in the most effective way. He also said increased efficiency will attract more customers. Lastly, Harrison reiterated that his tenure would be short, and that he sees his role as an interim leader to get the company to solid footing before he exits.

     

    “The company’s cuts have trimmed its footprint in Jacksonville. Earlier in the year, the company jettisoned 500 employees here. For investors, Harrison’s focus on efficiency brings hopes of faster future earnings, Sherman said. ‘(Harrison) is really delivering,’ said Sherman. ‘I don’t think [the management team is] going to let up. I think you’re going to keep seeing more efficiency.’

    The July 18, 2017 Jacksonville Daily Record: “CSX wants to renovate Jacksonville headquarters; $2 million investment in riverfront building comes after job cuts, introduction of new CEO: CSX Corp. not only is updating the railroad’s operating program. It also wants to renovate its Downtown Jacksonville headquarters at a cost of $1.85 million.

    “The city is reviewing a building permit for Auld & White Constructors Inc. to renovate the 15th-floor executive offices at 500 Water St. on the riverfront. With all the other changes at the company, including a new CEO, job cuts and a focus on improving the operations, there were questions whether CSX was committed to maintaining its headquarters in Jacksonville.

     

    “‘With these updates, CSX expects that the headquarters building will accommodate our needs for the foreseeable future,’ said spokesman Rob Doolittle on July 17. Plans show remodeling of 20,450 square feet of space for offices, conference rooms, a recording studio, work café, a warming kitchen, and more, including the C-Suite. That suite appears to be for CEO Hunter Harrison and two other top executives. Their offices are near the almost-1,200-square-foot boardroom.

     

    “CSX said the building, which it owns, was constructed in 1959 and opened in 1960. It comprises almost 487,000 square feet of space. Gresham, Smith and Partners is the architect for the renovations. Doolittle said CSX is renovating to modernize and update the space ‘and to accommodate changes to the office space needs of our staff.’ He said projects include modifications to the lobby area, the 15th floor and several other locations. He said the work is expected to be completed over the next year in phases so that it can minimize disruption for employees.”

    Commentary from railroaders and other observers, as noted above:

    Cowen and Company Managing Director and Railway Age Wall Street Contributing Editor Jason Seidl:

    • “Our concerns about service stem primarily from direct channel checks with a number of rail customers as well as our [most recent shipper] survey, in which shippers expressed some displeasure with CSX’s service, with 24% calling it ‘poor.’ No other railroad received a ‘poor’ rating from more than 6% of shippers. However, we suspect this view of CSX is related to a reduction in the number of offerings rather than the poor quality of service, given the company’s fairly solid productivity metrics. In addition to potentially impacting the company’s ability to get price, the service issues could lead to some market share loss. A key point here is that we believe the percentage of the rail network in the east that is peer- and truck-competitive is materially greater than that north of the U.S. border, where Harrison achieved two of his big successes.”
    • “The 2Q 2017 financials are squishy, and the related commentary is only marginally credible. Start with revenue: It was ‘goosed’ by $58 million in ‘liquidated damages’ for a volume commitment that was not met in previous periods. This was almost certainly a coal shipper, as revenue for coal is shown as up 27% on a volume increase of only 7%. This has nothing to do with current quarter operations.
    • On the expense side, ‘a favorable judgment related to a previously condemned property of $55 million’ was credited against ‘Materials, Supplies and Others.’ Again, nothing to do with 2Q 2017. Further, a rental income of $13 million that formerly was treated as ‘Other Income’ (i.e., it had no impact on the Operating Ratio) was moved to be a credit against ‘Equipment and Other Rents.’ Thus, $126 million of favorable one-time adjustments were made. The 2Q 2017 OR without the restructuring charge was reported as 63.2, but in reality would have been 66.8 but for the above factors. Other ‘non-material adjustments’ were alluded to.”
    • “All helper crews are to be eliminated system-wide and crews will double grades. EHH had all CSX division superintendents and assistants escorted off the property on Friday (July 14). Then, a dozen or more CN operating officers are leaving to come to CSX with much higher pay and stock options.”
    • “One casualty of EHH’s new plan: napping breaks, which train conductors and engineers are allowed to take for up to 45 minutes under a strict protocol when trains are stopped.”
    • EHH is now making CSX employees buy their own work boots and personal protective wear if not covered by union agreements. He’s eliminating as many ‘long pools’ as he can, in favor of more frequent, shorter crew starts that don’t require a hotel stay. ‘Three-Point Protection’ is gone, and yard speed limits were increased. Dispatchers will be moving back to Jacksonville by the end of October. No more use of brake sticks that allowed crews to release or engage hand brakes without getting in between cars.”
    • “EHH eliminated Road Foreman of Engines positions. He eliminated yard cabs, and Trainmasters are now required to take crews out to trains in their own cars. He closed most of the hump yards—Birmingham, Atlanta, Toledo, Cumberland, Selkirk, Louisville, Hamlet and Willard Westbound. Avon and Willard Eastbound are currently still open but probably will be closed. Cincinnati, Waycross and Nashville are the only ones left.”
    • “Hunter did away with the rule banning getting off moving equipment. He currently has a team working on a design to single-track from Albany, N.Y. to Chicago.”
    • “We have no senior leadership in the field other than Trainmasters and Chief Dispatchers, and many of the Trainmasters are so young and new they have no real knowledge of how CSX works—or how a train works, for that matter.”
    • “Things are really slowing down on CSX in Ohio. Train movement in and out of Willard is at a crawl. Sidings are filling up. Even the daily train from the Wheeling & Lake Erie to Willard is taking much longer to get in and out of Willard. Twelve hours to run from New London, Ohio, to Willard and return—about 30 miles.
    • “In New York State, we’re starting to witness some problems on the Water Level Route. As the name implies, it’s pretty much flat, save for six miles of 0.89% westbound grade near Batavia. I’ve gone on lunch break from work a couple of times now in the past two weeks and heard crews talking on the radio about some heavy westbound train stalled into Batavia, and they’re single-tracking around it. ‘In-the-field’ reports suggest that the average size of merchandise freights these days is 800-900 axles with only two units up front. The best that one of these trains could hope for is 5 mph up the 0.89%.
    • “Willard had two yardmasters per shift, one Eastbound and one Westbound. In July, Eastbound was handed all of New Castle’s work, which includes three different yards—totally overwhelming. And then Saturday, Willard WB yardmasters were abolished, so we now have one person per shift running everything between Willard and New Castle. It’s absolute chaos. Already, one yardmaster is out of service for a side swipe.
    • “The most important point is that they closed the westbound hump in the process! Now the eastbound hump processes both east and west traffic. The no. 2 main is now a yard track, and the westbound receiving and block-swap tracks are departure tracks for both directions.
    • “EHH abolished the long pools between Buffalo and Willard, and Willard and Chicago. The North Baltimore to Chicago and the New Castle to North Baltimore long pools still exist—for now. So, any train not going to and from North Baltimore is short-pooled: Buffalo to Cleveland, Cleveland to Willard, Willard to Garrett, Garrett to Chicago.
    • “CSX workers say that Willard and Avon are in meltdown mode, with way too many cars and trains being held back. One person said New Castle has 700 cars for Willard that Willard can’t take, and Willard is actually sending cars back to New Castle to get them out of the way.
    • “Willard Yard was running about the mid- to high 20s in dwell hours up until three weeks ago. As of July 7, dwell was at 36.2 hours. Avon Yard was running about the same as Willard Yard until about four weeks ago. As of July 7, dwell was at 34.2 hours. Larger dwell hours exist at the following yards as of July 7: Montgomery, Ala.: 52.6 hours. Louisville, Ky.: 45.7 hours. Nashville: 44 hours. Russell, Ky.: 43.3 hours. Toledo: 50.1 hours
    • “Avon is packed with cars; it is bursting at the seams right now. It doesn’t have enough power to move trains out of the departure yard, and there are another 1,200 enroute. There 700 in receiving, 1,000 in the bowl, and 1,150 in departure.
    • “To add insult to injury, EHH asked the BLET (Brotherhood of Locomotive Engineers and Trainmen) to start discussing converting our pay from mile/trip rates to hourly—the same game plan from the CN and CP.”
    • “CSX is running empty cars sometimes thousands of miles without a load to avoid dwell and Increase velocity measurements. EHH has silenced the knowledge base that really runs the railroad, and that is never good. You can’t improve fuel efficiency by running empty cars away from loads. CSX is storing or selling equipment, creating a shortage of gons for scrap loading. Order fill rates are at about 23%, causing shippers to move scrap by truck, barge and ship. I estimate CSX lost more than 1,000 scrap loads in June, and July looks worse.
    • “The hump yard closings have caused congestion at other yards, causing CSX to move cars to other locations. Hundreds of loads are moving on wrong trains (‘right car, right train’ measurement seems to have been eliminated). Yards are moving cars on the wrong trains because there is no time to switch them, to avoid a ‘dwell beating’ from EHH. The same thing is happening with bad-order cars to get them off dwell numbers.
    • “When too much focus is put on dwell time, the field will find ways to avoid a ‘Dwell Spanking.’ It would be interesting to see what the bad-order and empty-miles numbers are showing before and after EHH came. The steel mills are the next group to complain because there is no scrap moving due to storage and possible sale of gons. CSX is a ‘spaghetti’ railroad and thus ‘Precision Railroading’ will not work.”

    Independent railway economist  and Railway Age Contributing Editor Jim Blaze:

    “Car dwell in selected CSX yards is deteriorating vs. similar weeks one year ago. Upward-trending yard dwell times are a statistical indicator of poor origin/delivery freight movements. This is well known to network simulators that examine such technical material. That said, train speeds out on the main lines are much higher now for some customers. However, intermodal blocks that used to move in unit trains are clearly moving much slower. That doesn’t translate into a likely huge intermodal growth scenario. There is a likely negative market consequence from these operational performance metrics. Motor-vehicle shippers like Ford can’t be happy as their supply chain adjusts to slower manifest train speeds. Grain cars, often owned by shippers, are moving slower. So while CSX reports it is storing or scrapping cars, some of their customers likely face the problem of having to buy new cars.” (For reference, download the PDF of CSX yard dwell times and train speeds at the link below. Blaze compiled the data, taken from the most recent reporting week as of July 23, 2017, as reported by CSX to the AAR.)

    A CSX engineering department system production team machine operator:

    “By far, the biggest change to me and my coworkers is the change from four ten-hour days to five eight-hour days for almost all jobs. Supposedly, the change was made due to switching from working curfews to working windows between trains to keep from holding them up. If you’re only getting three hours of track time, for example, between trains to put a system team on the track to replace ties or rail or surface, there is no sense in having a ten-hour work day. The downside is that there are system production teams with people living all over the eastern U.S. They’re getting off work Friday afternoon, with only two days off to drive home (sometimes very long distances), be with their families, take care of things at home and drive back to their hotel by Sunday night in order to work Monday morning. If you live very far from where the team is working, it’s very hard to do. A lot of people just end up having to stay on the road because they can’t go home. Going from three days off per week to two makes a huge difference to us on system production teams!

     

    “Some other changes that occurred recently: They are doing away with warm-up stretching we used to do at the end of the morning job briefings. There are no more Safety Committees and Safety Committee meetings. 

    “These changes are giving the impression that concern for the almighty dollar has become more important than worker safety or workers being with their families.”

    • “Hunter is out of control. He’s destroying good, experienced railroaders’ lives and careers. He wants to take the premier high-capacity main line in the East, the (ex-New York Central-Penn Central-Conrail) Water Level Route, which Al Perlman reduced from a four-track main to two tracks, and reduce it to a single track. Ten or twelve years ago the railroads were saying they didn’t have enough capacity. Now he wants to reduce it? That’s insanity.”
    • “Al Perlman reduced capacity because he had excess capacity and couldn’t afford to maintain redundant signals and track structure. I don’t know what the situation is now on the Water Level Route, or the projections, but one wonders  if the reason has more to do with cutting costs to improve the stock price than with being genuinely thought out and data driven.”
    • “Hunter hasn’t learned his lesson from when he tried to take over Norfolk Southern: Railroad customers, the communities in which railroads operate and legislators collectively form a powerhouse. Few people know this, but Hunter didn’t voluntarily retire from CN. CN wasn’t planning on renewing his contract. He got angry, so he eventually teamed with the hedge funds. It’s all about personal gain.”
    • “Harrison’s previous railroads—the Illinois Central, CN, and Canadian Pacific—were all linear railroads, while CSX is a network. It is a lot easier to do ‘Precision Railroading’ on a linear railroad. Harrison offended sufficient customers on his previous railroads to reduce traffic, and therefore reduce congestion, and he could then close a lot of yards. And then, Bingo! ‘Precision Railroading’ falls right into place. I’m not certain he will be able to pull off ‘Precision Railroading’ on CSX.
    • “What really disturbs me about Hunter right now is that he knows he runs one of the largest, mostly unsupervised outdoor factory floors in the world, which means productivity and efficiency require a high level of worker effort possible only when morale is high. Yet in the midst of devastating employee layoffs sure to wreak economic havoc on an equal number of families, Hunter is spending to spruce up his executive offices! He earned the title, ‘Ugly American’ when in Canada for upsetting long-standing workplace cultural norms. Now he is cementing his image, among employees, as ‘The Ugly One.’ Loyalty is not a one-way street.”
    • “In the ‘business ecosystem,’ company stakeholders consist of more than just shareholders. They include customers, employees, suppliers, business partners, communities, etc. Cost reduction can generate immediate financial results, but it is organic growth that makes a business sustainable for the long term. Looking through the eyes of just one stakeholder—the shareholder—makes the business ecosystem unsustainable.”

    Pretty strong words, for certain. I’m not sure how much of what’s been said here is accurate, or how much comes from people with their own agendas. All I know is that it would be rather difficult to make some of this up. I certainly would like to hear from more of you, whether or not you agree with what’s been reported.

    I have been hoping I would hear from Hunter Harrison, and he has indeed contacted me. Understandably, he strongly disagrees with what has been said in this article, and has asked for an opportunity to respond. There is a bigger picture here, he feels, that people aren’t seeing or aren’t willing to see. So, within short order, expect to see a response, unedited, from Hunter Harrison.

     

    ]]>
    http://so-l.ru/news/y/2017_07_24_hunter_harrison_is_out_of_control_wh Mon, 24 Jul 2017 21:47:50 +0300
    <![CDATA[New Strong Buy Stocks for July 21st]]> Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today:

    ASML Holding NV (ASML): This manufacturer of chip-making equipment has witnessed the Zacks Consensus Estimate for its current year earnings surging 4.8% over the last 30 days.

    ASML Holding N.V. Price and Consensus

     

    ASML Holding N.V. Price and Consensus | ASML Holding N.V. Quote

    Autohome Inc (ATHM): This online destination for automobile consumers in China has seen the Zacks Consensus Estimate for its current year earnings increasing 1.3% over the last 30 days.

    Autohome Inc. Price and Consensus

     

    Autohome Inc. Price and Consensus | Autohome Inc. Quote

    Boardwalk Pipeline Partners, LP (BWP): This limited partnership company has witnessed the Zacks Consensus Estimate for its current year earnings advancing 2.2% over the last 30 days.

    Canadian Pacific Railway Limited (CP): This owner and operator of a transcontinental freight railway in Canada and the United States has seen the Zacks Consensus Estimate for its current year earnings surging 4.6% over the last 30 days.

    CGI Group Inc (GIB): This company that manages information technology (IT) services, as well as business process services has witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.6% over the last 30 days.

    CGI Group, Inc. Price and Consensus

     

    CGI Group, Inc. Price and Consensus | CGI Group, Inc. Quote

    You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

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    CGI Group, Inc. (GIB): Free Stock Analysis Report
     
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    ASML Holding N.V. (ASML): Free Stock Analysis Report
     
    To read this article on Zacks.com click here.
     
    Zacks Investment Research]]>
    http://so-l.ru/news/y/2017_07_21_new_strong_buy_stocks_for_july_21st Fri, 21 Jul 2017 16:41:00 +0300
    <![CDATA[Canadian Pacific's (CP) Q2 Earnings Beat, Revenues Miss]]> Railroad operator Canadian Pacific Railway Limited CP reported better-than-expected earnings but lower-than-expected revenues in second-quarter 2017. The company’s earnings (on an adjusted basis) of $2.06 per share (C$2.77) beat the Zacks Consensus Estimate by a penny and also improved 29.6% from the year-ago figure.

    Quarterly revenues increased 8.5% year over year to $1,221.1 million (C$1,643 million) but fell short of the Zacks Consensus Estimate of $1,235.9 million. Freight revenues, which improved 11% year over year on a foreign exchange adjusted basis, accounted for the bulk (97.3%) of the top line.

    Freight segment consists of Grain (up 20%), Coal (up 11%), Potash (up 38%), Sulfur and Fertilizer (down 4%), Forest products (down 3%), Energy, Chemicals and Plastics (up 16%), Metals, Minerals and Consumer products (up 36%), Automotive (down 15%) and Intermodal (up 8%). Total freight revenues per revenue ton-miles (RTMs) decreased 1% on a foreign exchange adjusted basis in the reported quarter. Additionally, the foreign exchange adjusted increase in freight revenues per car load was 3%.

    Operating income (on an adjusted basis) climbed 23.2% in the second quarter. Operating ratio (operating expenses as a percentage of revenues on an adjusted basis) came in at 58.7% compared with 62.0%, a year ago. 

    Canadian Pacific Railway Limited Price, Consensus and EPS Surprise

     

    Canadian Pacific Railway Limited Price, Consensus and EPS Surprise | Canadian Pacific Railway Limited Quote

    Liquidity

    This Zacks Rank #2 (Buy) company exited the second quarter with cash and cash equivalents of C$238 million compared with C$164 million at the end of 2016. Long-term debt totaled C$7,660 million compared with C$8,659 million at the same time around. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

    Upcoming Releases

    Investors interested in the railroad space are keenly waiting for second-quarter earnings reports from key players like Canadian National Railway Company CNI, Kansas City Southern KSU and Norfolk Southern Corporation NSC. While Canadian National is scheduled to report its second-quarter results on Jul 25, Kansas City Southern and Norfolk Southern will report on Jul 21 and Jul 26 respectively.

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    Kansas City Southern (KSU): Free Stock Analysis Report
     
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    To read this article on Zacks.com click here.
     
    Zacks Investment Research]]>
    http://so-l.ru/news/y/2017_07_20_canadian_pacific_s_cp_q2_earnings_beat Thu, 20 Jul 2017 15:16:00 +0300