Canadian Pacific Kansas City (CP) Reports Next Week: Wall Street Expects Earnings Growth

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Canadian Pacific Kansas City (CP) despite lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $0.88 per share, reflecting a +1.2$2.74 billion, down 1.1% from the previous year [3]. - The consensus EPS estimate has been revised 2.07% lower in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.74%, indicating a bearish outlook from analysts [11]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which increases the likelihood of a positive surprise to nearly 70% [8]. Historical Performance - In the last reported quarter, CP was expected to post earnings of $0.74 per share but delivered$0.73, resulting in a surprise of -1.35% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [13]. Conclusion - Canadian Pacific Kansas City does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, but investors should consider other factors before making investment decisions [16].