CP's Q4 Earnings Coming Up: What's in the Offing for the Stock?

Core Viewpoint - Canadian Pacific Kansas City Limited (CP) is expected to report its fourth-quarter 2024 results on January 29, with a downward revision in earnings estimates and a slight decline in revenue expectations compared to the previous year [1][2]. Financial Estimates - The Zacks Consensus Estimate for CP's fourth-quarter earnings has been revised down by 4.4% to 88 cents per share [2]. - Revenue estimates for the fourth quarter are projected at $2.74 billion, indicating a decrease of 1.1$3.65 billion, reflecting a 1.3% decline from the fourth quarter of 2023 [4]. - Despite lower fuel costs, which are expected to decrease by 13.1% year over year to $3.19 per gallon, bottom-line growth remains uncertain [5]. Operational Efficiency - Canadian Pacific's proactive cost-cutting initiatives are expected to enhance operational efficiency, which may positively influence fourth-quarter results [5]. Earnings Prediction Model - Current analysis indicates that the model does not predict an earnings beat for Canadian Pacific, with an Earnings ESP of -3.74% and a Zacks Rank of 3 (Hold) [6].