Canada's CN Q2 revenue misses estimates, removes 2024-2026 financial outlook due to volatility
Overview
CN Q2 revenue falls 1% to C$4.272 bln, missing analyst estimates
Adjusted EPS meets expectations at C$1.87, adjusted net income misses
Co lowers 2025 adjusted EPS growth forecast due to economic uncertainty
Outlook
CN expects 2025 EPS growth in mid to high single-digit range
Company plans C$3.4 bln capital investment in 2025
CN removes 2024-2026 financial outlook due to volatility
Company assumes 2025 RTM growth in low single-digit range
Result Drivers
COST CONTROL - CN attributes strong operating income growth to tight cost control despite revenue decline
TRADE ISSUES - Company working closely with customers impacted by trade issues to provide necessary services
ECONOMIC UNCERTAINTY - CN lowers 2025 adjusted EPS growth forecast due to persistent trade and tariff volatility
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | C$4.27 bln | C$4.34 bln (19 Analysts) |
Q2 Adjusted EPS | Meet | C$1.87 | C$1.87 (21 Analysts) |
Q2 EPS |
| C$1.87 |
|
Q2 Adjusted Net Income | Miss | C$1.17 bln | C$1.18 bln (15 Analysts) |
Q2 Net Income |
| C$1.17 bln |
|
Q2 Adjusted Operating Income | Miss | C$1.64 bln | C$1.66 bln (18 Analysts) |
Q2 Operating Income |
| C$1.64 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the ground freight & logistics peer group is "buy"
Wall Street's median 12-month price target for Canadian National Railway Co is C$159.00, about 14.3% above its July 21 closing price of C$136.26
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago
Press Release: ID:nGNX6B4mdf
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