Research Desk Line-up: Westinghouse Air Brake Technologies Post Earnings Coverage
LONDON, UK / ACCESSWIRE / November 3, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Canadian National Railway Co. (NYSE: CNI), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=CNI, following the Company's announcement of its financial results on October 24, 2017, for the third quarter of the fiscal year 2017 (Q3 FY17). The Montreal, Canada-based Company's total revenues rose 7% y-o-y. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Railroads industry. Pro-TD has currently selected Westinghouse Air Brake Technologies Corporation (NYSE: WAB) for due-diligence and potential coverage as the Company reported on October 24, 2017, its financial results for Q3 2017 and also updated its financial guidance for 2017. Register for a free membership today, and be among the early birds that get access to our report on Westinghouse Air Brake Technologies when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CNI; also brushing on WAB. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/'symbol=CNI
http://protraderdaily.com/optin/'symbol=WAB
Earnings Reviewed
In Q3 FY17, Canadian National Railway reported total railway operating revenues of C$3.22 billion compared to C$3.01 billion recorded at the end of Q3 FY16. The Company attributed the growth of revenues to higher volumes across several sectors such as Metals and Minerals, Coal, Intermodal, and Automotive. However, the revenue numbers lagged market consensus estimates of C$3.28 billion.
The Canadian railroad Company's net income fell to C$958 million, or C$1.27 per diluted share, in Q3 FY17 from C$972 million, or C$1.25 per diluted share, in Q3 FY16. The Company's adjusted net income was C$989 million, or C$1.31 per diluted share, for Q3 FY17 versus C$972 million, or C$1.25 per diluted share, in the last year's same quarter. Meanwhile, Wall Street had expected the Company to report adjusted net income of C$1.33 per diluted share.
Operational Metrics
For the reported quarter, the Company's total operating expenses were C$1.76 billion compared to C$1.61 billion in Q3 FY16. The Company's operating income came in at C$1.46 billion for Q3 FY17 compared to C$1.41 billion in Q3 FY16. Canadian National Railway's operating ratio improved 1.4 points to 54.7% in Q3 FY17 from 53.3% in the year-ago comparable quarter. Revenues ton miles (RTMs) totaled 59.06 billion in Q3 FY17 compared to 53.45 billion in the prior's year corresponding quarter. Furthermore, revenue per thousand RTM came in at 5.11 cents for Q3 FY17 versus 5.26 cents in Q3 FY16.
Segment Results
Canadian National Railway's Petroleum and Chemicals segment's revenues came in flat at C$532 million in Q3 FY17 compared to revenues reported in Q3 FY16. For Q3 FY17, the segment's RTMs were 10.82 billion, up from 10.71 billion in Q3 FY16.
Metals and Minerals segment's revenues surged 31% to C$396 million in Q3 FY17 from C$303 million in Q3 FY16. In Q3 FY17, the segment's RTMs also surged to 7.78 billion from 5.19 billion in Q3 FY16.
The Company's Forest Products segment's revenues fell to C$440 million in Q3 FY17 from C$449 million in Q3 FY16. Furthermore, the segment's RTMs stood at 7.61 billion in Q3 FY17 compared to 7.91 billion in Q3 FY16.
For Q3 FY17, Coal segment's revenues were C$135 million, rising 23% from C$110 million in the year-ago same period. Meanwhile, the segment's RTMs were 3.72 billion for the reported quarter versus 2.65 billion in Q3 FY16.
Grain and Fertilizers segment's revenues were down 1% to C$492 million y-o-y during Q3 FY17. However, the segment's RTMs were up by 2% to 12.63 billion y-o-y during Q3 FY17.
In Q3 FY17, Intermodal segment's revenues came in at C$827 million, rising 12% from C$736 million in the last year's comparable quarter. Additionally, the segment's RTMs increased 13% to 15.42 billion y-o-y during the reported quarter.
The Company's Automotive segment's revenues increased 4% to C$194 million y-o-y in Q3 FY17, whereas the segment's RTMs grew 19% to 1.08 billion y-o-y in Q3 FY17.
Furthermore, other revenues grew 2% to C$205 million y-o-y during the reported quarter.
Cash Flow and Balance Sheet
During Q3 FY17, net cash provided by operating activities totaled C$1.41 billion compared to C$1.49 billion in the prior year's corresponding period. Furthermore, free cash flow was C$662 million during the reported quarter compared to C$574 million in the quarter ended September 30, 2016.
At the close of books on September 30, 2017, Canadian National Railway had C$109 million as cash and cash equivalents compared to C$176 million at the close of books on December 31, 2016. Furthermore, the Company reported long-term debt of C$8.69 billion as on September 30, 2017, compared to C$9.45 billion as on December 31, 2016.
Dividend and Share Repurchase
In a separate press release on October 24, 2017, Canadian National Railway's Board of Directors declared a dividend of C$0.4125 per common share, payable on December 29, 2017, to shareholders of record at the close of business on December 08, 2017.
In Q3 FY17, the Company repurchased and retired 5.3 million of its common stock for C$532 million at an average price of C$101.49 per share. Furthermore, the Company's Board of Directors have approved the repurchase of up to 31 million of its common shares starting on October 30, 2017, and ending no later than October 29, 2018.
Stock Performance
Canadian National Railway's share price finished yesterday's trading session at $80.33, slightly up 0.39%. A total volume of 829.24 thousand shares have exchanged hands. The Company's stock price surged 1.27% in the last three months, 7.62% in the past six months, and 28.94% in the previous twelve months. Additionally, the stock rallied 19.18% since the start of the year. Shares of the Company have a PE ratio of 20.20 and have a dividend yield of 1.63%. The stock currently has a market cap of $60.23 billion.
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