Canadian National Railway (CNR) beat analysts’ expectations for its second quarter results as
the Montreal-based railroad raised its prices to offset increasing operating costs.
CN Rail reported that its revenue in the second quarter totaled $4.34 billion, beating the $4.08
billion that was expected by analysts. Revenues in Q2 were 21% higher than a year earlier.
The company said its revenue got a lift from a combination of higher freight rates and fuel
charges, as well as strong volumes of coal and grain. A weakening Canadian dollar also gave
CN Rail’s business a boost between April and June.
CN Rail said it earned $1.93 per share, which also beat forecasts of $1.76. The company
reiterated its guidance for 15% to 20% earnings growth for all of this year versus 2021.
Freight revenue per carload rose 21% from the second quarter of last year. Automotive
shipments increased 31% and coal shipments rose 29%, which offset a 4% decline in
intermodal business, the company said.
CN’s operating ratio, which measures expenses as a percentage of revenues, stood at 59.3% in
the second quarter.
Management at the railway said in releasing the Q2 numbers that they are anticipating a busy
autumn with a large grain crop from western Canada.
CN Rail’s stock is down 3% this year and trading at $150.61 per share.
