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Investing.com -- Canadian National Railway (NYSE:CNI) (TSX:CNR) reported first-quarter earnings that exceeded analyst expectations, with revenue rising 4% YoY amid challenging winter conditions and macroeconomic uncertainty.
The Montreal-based railroad operator posted adjusted earnings per share of C$1.85, surpassing the analyst consensus of C$1.79. Revenue for the quarter came in at C$4.4 billion, slightly above the estimated C$4.38 billion and up 4% from the same period last year.
CN’s operating ratio, a key measure of efficiency, improved by 0.2 points to 63.4%. Revenue ton miles, which measures the weight and distance of freight transported, increased 1% to 60,049 million.
The company’s stock showed no significant movement following the earnings release.
"Our team delivered a strong performance this quarter through tight cost control and disciplined adherence to our plan, mitigating the impact of winter conditions," said Tracy Robinson, President and Chief Executive Officer of CN.
Despite the solid results, CN acknowledged the potential risks ahead. "In the context of a volatile macroeconomic and geopolitical environment, we will remain focused on agility and customer collaboration," Robinson added.
CN maintained its 2025 guidance, expecting adjusted diluted EPS growth of 10-15% and planning capital investments of approximately C$3.4 billion. The company also reiterated its 2024-2026 financial outlook, targeting high single-digit compounded annual adjusted diluted EPS growth.
However, CN noted a heightened recessionary risk related to tariffs and trade actions taken by various countries, which could impact its outlook.
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