Canadian Pacific Railway Limited (TSX: CP) shared this morning its financial results for Q3 2021 ending September 30, 2021, highlighting revenue of $1.94 billion. This is a 4% increase from Q3 2020’s revenue of $1.86 billion.
“The third quarter presented challenges across the supply chain, but the CP team’s commitment to the foundations of precision scheduled railroading enabled us to respond quickly and effectively to changing environments,” said CP CEO Keith Creel. “We are committed to controlling what we can control, as CP continues to focus on providing service excellence to our customers and driving value for our shareholders.”
However, the company’s quarterly net income dipped to $472 million this quarter compared to $598 million in the same comparable period last year. This translates to $0.70 earnings per share this quarter, a drop from last year’s $0.88.
“Despite global supply chain issues and a challenging Canadian grain crop, we remain confident in our ability to deliver full-year double-digit adjusted diluted EPS growth,” Creel added.
The company’s cash, cash equivalents, and restricted cash position ended at $223 million from a starting balance of $892 million. The cash burn for the quarter was primarily due to an approximately $1.8 billion payment the company made related to the Kansas City Southern (NYSE: KSU) merger. The Missouri-based railway terminated its original merger agreement with CN (TSX: CNR) to give way to CP’s proposal, incurring termination fees which CP remitted to KCS.
Current assets at quarter’s end carry a balance of $1.45 billion while current liabilities came in at $3.68 billion.
With the KCS merger, the Canadian railway relayed that it is preparing to create the first single-line rail network linking the U.S., Mexico, and Canada.
Canadian Pacific Railway last traded at $90.82 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
