Canadian Pacific Q3 Earnings & Revenues Miss Estimates, Improve Y/Y

Canadian Pacific Kansas City CP reported unimpressive third-quarter 2025 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.The quarterly earnings (excluding 7 cents from non-recurring items) of 80 cents per share missed the Zacks Consensus Estimate by a penny. The bottom line improved 9.5% on a year-over-year basis. Operating revenues of $2.65 billion lagged the Zacks Consensus Estimate of $2.67 billion. However, the top line improved 2.2% on a year-over-year basis.In the reported quarter, total Freight revenues per revenue ton miles decreased 1% year over year. Total Freight revenues per carload declined marginally year over year.On a reported basis, operating income increased 11%. Total operating expenses fell 1% year over year. The reported operating ratio (operating expenses as a percentage of revenues) fell 260 basis points to 63.5% from the year-ago quarter.Canadian Pacific Kansas City Limited Price, Consensus and EPS Surprise Canadian Pacific Kansas City Limited price-consensus-eps-surprise-chart | Canadian Pacific Kansas City Limited QuoteCP’s Segmental HighlightsFreight revenues, which accounted for 98% of the top line, increased 4% year over year. CP’s Freight segment contains Grain (up 4%), Coal (up 3%), Potash (up 15%), Fertilizers and Sulphur (up 11%), Metals, minerals and consumer products (up 2%), Automotive (up 2%) and Intermodal (up 7%). Meanwhile, Energy, chemicals and plastics, and Forest products fell 2% and 3%, respectively.Other revenues decreased 18% year over year in the third quarter of 2025.CP’s LiquidityCP exited the third quarter with cash and cash equivalents of C$411 million compared with C$799 million at the end of the prior quarter. Long-term debt amounted to C$21.59 billion compared with C$21.22 billion at the end of the prior quarter.CP’s OutlookDespite the ongoing tariff and trade policy uncertainty, Canadian Pacific expects 2025 core adjusted earnings per share to grow in the 10%-14% range from the 2024 actuals to C$4.25 per share.The company continues to expect 2025 RTMs to increase in the mid-single digits from the 2024 actuals.Management expects capital expenditures to be C$2.9 billion for the full year. The core adjusted effective tax rate for 2025 is expected to be 24.5%.Currently, Canadian Pacific carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Q3 Performances of Other Transportation CompaniesDelta Air Lines DAL reported third-quarter 2025 earnings (excluding 46 cents from non-recurring items) of $1.71 per share, which beat the Zacks Consensus Estimate of $1.52. Earnings increased 14% on a year-over-year basis due to low fuel costs.Revenues in the September-end quarter were $16.67 billion, beating the Zacks Consensus Estimate of $15.79 billion and increasing 6.4% on a year-over-year basis. Due to improving air-travel demand, adjusted operating revenues (excluding third-party refinery sales) increased 4.1% year over year to $15.2 billion. J.B. Hunt Transport Services, Inc. (JBHT) reported third-quarter 2025 earnings of $1.76 per share, which surpassed the Zacks Consensus Estimate of $1.47 and improved 18.1% year over year.Total operating revenues of $3.05 billion surpassed the Zacks Consensus Estimate of $3.02 billion and were down 0.5% year over year. JBHT’s third-quarter revenue performance was hurt by a 1% and 4% decline in gross revenue per load in Intermodal (JBI) and Truckload (JBT), respectively, a decrease in load volume of 8% and 1% in Integrated Capacity Solutions (ICS) and Dedicated Contract Services (DCS), and 8% fewer stops in Final Mile Services (FMS). These items were partially offset by a 3 % improvement in DCS productivity, a 9% increase in revenue per load in ICS and 14% load growth in JBT. Total operating revenue, excluding fuel surcharge revenue, fell less than 1% year over year.United Airlines Holdings, Inc. (UAL) reported mixed third-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.UAL's third-quarter 2025 adjusted earnings per share (EPS) (excluding 12 cents from non-recurring items) of $2.78 surpassed the Zacks Consensus Estimate of $2.64 but declined 16.5% on a year-over-year basis. The reported figure lies above the guided range of $2.25 and $2.75.Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.3 billion but increased 2.6% year over year. Passenger revenues (which accounted for 90.7% of the top line) increased 1.9% year over year to $13.8 billion. UAL flights transported 48,382 passengers in the third quarter, up 6.2% year over year.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Airlines Holdings Inc (UAL): Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT): Free Stock Analysis Report Canadian Pacific Kansas City Limited (CP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks