CP Rail forecasts earnings growth despite drop in second-quarter profits

CALGARY – Canadian Pacific Railway Ltd. is forecasting adjusted earnings growth in 2020 despite a sharp drop in profits in the second quarter.

The Calgary-based railway beat expectations even though its net income decreased 12.3 per cent to $ 635 million in the quarter.

That equalled $ 4.66 per diluted share, down from $ 5.17 per share of $ 724 million a year earlier.

Adjusted net income was $ 553 million or $ 4.07 per share for the three months ended June 30, compared with $ 602 million or $ 4.30 per share in the second quarter of 2019.

Revenues were $ 1.79 billion, down 9.4 per cent from $ 1.98 billion in the prior year quarter.

CP Rail was expected to report $ 3.78 per share in adjusted earnings on $ 1.76 billion of revenues, according to financial markets data firm Refinitiv.

This report by The Canadian Press was first published July 22, 2020.

Companies in this story: (TSX:CP)