Canadian National Railway (CNR) has raised its full-year earnings guidance following better-
than-expected third-quarter results.
The rail company said it is benefiting from a strong U.S. dollar and higher fuel surcharges when
announcing that it earned $2.13 a share in this year’s third quarter, beating analyst forecasts for
$2 per share in earnings.
Revenue in Q3 amounted to $4.51 billion, exceeding the consensus forecast of analysts for
$4.32 billion.
The Montreal-based railway operator said it now expects earnings per share to grow 25% for all
of this year. Previously, the company forecast full-year growth of 15% to 20%.
The stronger guidance comes as Canadian National benefits from higher freight prices, fuel
surcharges, strong grain shipments, and a rallying U.S. dollar, which helps the company’s
finances when translated into the Canadian currency.
Demand for grain, coal and fertilizer is expected to remain elevated over the next year due to
the ongoing war in Ukraine, said the company.
Canadian National Railway’s stock is up 2% this year at $157.25 per share.
