Desjardins Has Negative Outlook for CP Q3 Earnings

Key Points

• Desjardins analysts have lowered their Q3 2025 earnings per share (EPS) estimate for Canadian Pacific Kansas City to $0.79, down from $0.82, while the consensus full-year estimate remains at $3.42.
• The company recently increased its quarterly dividend from $0.16 to $0.1651, reflecting a 0.9% annual yield.
• Institutional investors are showing increased interest, with significant stake increases from firms like JPMorgan Chase & Co. and Norges Bank in recent quarters.

Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP - Stock analysts at Desjardins lowered their Q3 2025 earnings per share (EPS) estimates for Canadian Pacific Kansas City in a research note issued to investors on Monday, October 6th. Desjardins analyst B. Poirier now anticipates that the transportation company will post earnings per share of $0.79 for the quarter, down from their prior estimate of $0.82. The consensus estimate for Canadian Pacific Kansas City's current full-year earnings is $3.42 per share. Desjardins also issued estimates for Canadian Pacific Kansas City's FY2025 earnings at $3.36 EPS, FY2026 earnings at $3.87 EPS and FY2027 earnings at $4.46 EPS.

Other equities analysts have also issued research reports about the stock. Barclays set a $90.00 price target on shares of Canadian Pacific Kansas City and gave the company an "overweight" rating in a research report on Thursday. National Bank Financial raised Canadian Pacific Kansas City from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, July 30th. Weiss Ratings reissued a "hold (c+)" rating on shares of Canadian Pacific Kansas City in a research report on Saturday, September 27th. Citigroup raised their target price on Canadian Pacific Kansas City from $89.00 to $94.00 and gave the stock a "buy" rating in a research report on Wednesday, July 9th. Finally, Scotiabank reissued an "outperform" rating on shares of Canadian Pacific Kansas City in a research report on Thursday, July 10th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $91.80.

Canadian Pacific Kansas City Price Performance

CP opened at $77.39 on Tuesday. The firm has a market cap of $70.18 billion, a P/E ratio of 24.11, a PEG ratio of 2.18 and a beta of 1.08. The firm has a 50-day moving average of $75.19 and a 200 day moving average of $76.42. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.81 and a current ratio of 0.93. Canadian Pacific Kansas City has a fifty-two week low of $66.49 and a fifty-two week high of $83.65.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last posted its quarterly earnings results on Wednesday, July 30th. The transportation company reported $0.81 earnings per share for the quarter, missing the consensus estimate of $0.82 by ($0.01). The company had revenue of $2.72 billion for the quarter, compared to the consensus estimate of $2.76 billion. Canadian Pacific Kansas City had a net margin of 28.05% and a return on equity of 8.69%. Canadian Pacific Kansas City's quarterly revenue was up 2.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.05 EPS.

Canadian Pacific Kansas City Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, October 27th. Stockholders of record on Friday, September 26th will be issued a $0.1651 dividend. The ex-dividend date of this dividend is Friday, September 26th. This is an increase from Canadian Pacific Kansas City's previous quarterly dividend of $0.16. This represents a $0.66 dividend on an annualized basis and a dividend yield of 0.9%. Canadian Pacific Kansas City's dividend payout ratio is 20.56%.

Hedge Funds Weigh In On Canadian Pacific Kansas City

A number of large investors have recently made changes to their positions in CP. Norges Bank bought a new position in shares of Canadian Pacific Kansas City in the second quarter worth $1,012,065,000. JPMorgan Chase & Co. boosted its stake in Canadian Pacific Kansas City by 87.2% during the second quarter. JPMorgan Chase & Co. now owns 16,000,064 shares of the transportation company's stock valued at $1,268,325,000 after buying an additional 7,454,810 shares during the period. Invesco Ltd. boosted its stake in Canadian Pacific Kansas City by 59.5% during the first quarter. Invesco Ltd. now owns 16,984,351 shares of the transportation company's stock valued at $1,192,471,000 after buying an additional 6,337,312 shares during the period. Fisher Asset Management LLC boosted its stake in Canadian Pacific Kansas City by 281.0% during the second quarter. Fisher Asset Management LLC now owns 5,431,316 shares of the transportation company's stock valued at $430,540,000 after buying an additional 4,005,942 shares during the period. Finally, Goldman Sachs Group Inc. boosted its stake in Canadian Pacific Kansas City by 70.4% during the first quarter. Goldman Sachs Group Inc. now owns 9,299,753 shares of the transportation company's stock valued at $652,936,000 after buying an additional 3,842,866 shares during the period. 72.20% of the stock is owned by institutional investors.

Canadian Pacific Kansas City Company Profile

Canadian Pacific Kansas City Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada, the United States, and Mexico. The company transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; merchandise freight, such as forest products, energy, chemicals and plastics, metals, minerals, consumer products, and automotive; and intermodal traffic comprising retail goods in overseas containers.

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