Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CANADIAN PACIFIC RAILWAY LTD. We currently have 45 research reports from 1 professional analysts.
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CANADIAN PACIFIC RAILWAY LTD
CANADIAN PACIFIC RAILWAY LTD
1Q16 Results; Adjusted EPS $2.50 (FCC/Consensus: $2.41); Launches New Share Repurchase Program; Dividend +43%
21 Apr 16
Impact: Positive as most of CP’s performance metrics came in above FCC’s estimates. CP reported 1Q16 revenue of $1.59 billion (FCC: $1.57 billion) and posted a record low operating ratio of 58.9% (FCC: 59.6%). In terms of efficiency, CP reported terminal dwell times are down by 22% y/y and network speed up 21% y/y. The Board at CP has approved the repurchase of up to 6.91 million of its common shares and authorized a dividend increase of $0.15/share to $0.50/share each quarter or $2.00/y. With CP’s recent share price appreciation, we are forced to lower our ranking to Market Perform, despite keeping our 12-month target price at $200/share.
TERMINATES EFFORTS TO MERGE WITH NORFOLK SOUTHERN
11 Apr 16
Though we were in favour of consolidation in the railroad industry and we believed the proposed CP-NS merger offered a viable solution to congestion in Chicago, IL, the time and effort spent on the controversial merger was becoming worrisome. CP realized that it needed to cut its losses and not extend itself on something that may never materialize.
FILES PROXY STATEMENT REGARDING SHAREHOLDER RESOLUTION FOR NORFOLK SOUTHERN ANNUAL MEETING
29 Mar 16
On March 29, 2016, after market close, CP announced that it has filed a definitive proxy statement for its Norfolk Southern (NS) shareholder resolution requesting its Board of Directors to participate in discussions with CP regarding the combination of the two companies. CP has also announced that it is still open to discussions with the NS Board regarding an increase to the offer and the structure of a potential combination, not limited to a voting trust.
1Q16 Carloads down 3.9% y/y; 1Q16e Diluted Adjusted EPS now $2.45/sh; 12 MTP $200/sh
22 Mar 16
Year-to-date carloads are down 3.9% compared to 2015 due to significant declines experienced in crude, metals, minerals, consumer products and coal; we assume a similar decrease in revenue for the quarter. Our 1Q16e fully diluted adjusted EPS of $2.45/share was lowered from $2.57/share after adjusting for a higher compensation and benefits expense, though partially offset due to the $55 mm land sale of the Arbutus Corridor. EPS guidance remains at double digit growth for FY2016. Due to commodity based headwinds, our DCF-NAV calculation results in a value of $198.09/share, therefore we have lowered our 12-month target price to $200/share but still maintain our Outperform ranking.
N+1 Singer - Morning Song 21-03-2017
21 Mar 17
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N+1 Singer - Augean - Double digit growth in ’16, good start to ‘17
21 Mar 17
Augean reported another year of double digit growth for 2016, with profits in line with our forecasts. Sales grew by 21% excluding landfill tax, while adjusted PBT grew by 18% to £7.1m before amortisation of acquired intangibles. DPS was increased by 54% to 1.0p, 25% ahead of our estimate. The business units made further strategic progress, with revenues from their top 20 customers increasing from 42% to 43% of the total, of which 88% was under contract or a framework agreement, increasing forward visibility. There has been an encouraging start to 2017 and management is confident of delivering another year of profits growth. The shares trade on undemanding single digit multiples, offering good value.