Canadian Pacific Kansas City Ltd
CP: XTSE (CAN)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| CAD 565.00 | Wyxx | Rjydlfcv |
Canadian Pacific Earnings: Intermodal Weakness and Margin Pressure Persist, but Outlook Positive
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Wide-moat Canadian Pacific Kansas City's third-quarter pro forma revenue (combining CP and Kansas City Southern results) fell 4% year over year, mostly due to persistent intermodal weakness, easing accessorial income, and lower fuel surcharges. Revenue missed our forecast on greater than anticipated intermodal and potash volume declines, which saw incremental pressure from the Canadian West Coast port strikes. We note that core carload pricing remains positive.