Zacks Research Has Bullish Forecast for CP Q3 Earnings

Key Points

• Investment analysts at Zacks Research have raised their Q3 2025 earnings estimate for Canadian Pacific Kansas City to $0.86 per share, up from a previous estimate of $0.85.
• Canadian Pacific recently reported Q2 earnings of $0.81 EPS, which missed analysts' expectations and showed an increase in revenue by 2.7% compared to the prior year.
• The company has increased its quarterly dividend to $0.1651 per share, representing a yield of 0.9% and a total annualized dividend of $0.66.

Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP - Equities research analysts at Zacks Research raised their Q3 2025 EPS estimates for shares of Canadian Pacific Kansas City in a note issued to investors on Wednesday, August 20th. Zacks Research analyst Team now forecasts that the transportation company will post earnings of $0.86 per share for the quarter, up from their previous estimate of $0.85. The consensus estimate for Canadian Pacific Kansas City's current full-year earnings is $3.42 per share. Zacks Research also issued estimates for Canadian Pacific Kansas City's Q4 2025 earnings at $0.99 EPS, FY2025 earnings at $3.40 EPS, Q2 2026 earnings at $0.94 EPS, Q3 2026 earnings at $1.01 EPS, FY2026 earnings at $3.89 EPS and Q1 2027 earnings at $1.02 EPS.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last issued its earnings results on Wednesday, July 30th. The transportation company reported $0.81 EPS for the quarter, missing the consensus estimate of $0.82 by ($0.01). The firm had revenue of $2.72 billion during the quarter, compared to analyst estimates 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 firm posted $1.05 earnings per share.

Several other equities research analysts have also issued reports on CP. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $91.00 price target on shares of Canadian Pacific Kansas City in a report on Monday, June 2nd. Evercore ISI decreased their price target on shares of Canadian Pacific Kansas City from $89.00 to $88.00 and set an "outperform" rating on the stock in a report on Thursday, May 1st. National Bank Financial raised shares of Canadian Pacific Kansas City from a "hold" rating to a "strong-buy" rating in a report on Wednesday, July 30th. Royal Bank Of Canada decreased their price target on shares of Canadian Pacific Kansas City from $122.00 to $121.00 and set an "outperform" rating on the stock in a report on Thursday, May 1st. Finally, Wall Street Zen raised shares of Canadian Pacific Kansas City from a "sell" rating to a "hold" rating in a report on Saturday, August 23rd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $92.30.

Canadian Pacific Kansas City Price Performance

Shares of Canadian Pacific Kansas City stock traded down $0.45 during midday trading on Monday, hitting $76.41. 1,299,281 shares of the company traded hands, compared to its average volume of 3,225,595. The stock has a market cap of $69.81 billion, a price-to-earnings ratio of 23.80, a PEG ratio of 2.13 and a beta of 1.06. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.81 and a current ratio of 0.93. The firm's fifty day moving average price is $77.46 and its 200-day moving average price is $76.57. Canadian Pacific Kansas City has a 12 month low of $66.49 and a 12 month high of $87.72.

Canadian Pacific Kansas City Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, October 27th. Shareholders of record on Friday, September 26th will be issued a dividend of $0.1651 per share. The ex-dividend date is Friday, September 26th. This is a positive change from Canadian Pacific Kansas City's previous quarterly dividend of $0.16. This represents a $0.66 annualized dividend and a yield of 0.9%. Canadian Pacific Kansas City's dividend payout ratio is currently 20.56%.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of CP. North Capital Inc. acquired a new position in Canadian Pacific Kansas City during the first quarter worth $27,000. Twin Peaks Wealth Advisors LLC purchased a new stake in shares of Canadian Pacific Kansas City in the second quarter valued at about $27,000. Cornerstone Planning Group LLC raised its holdings in shares of Canadian Pacific Kansas City by 209.8% in the first quarter. Cornerstone Planning Group LLC now owns 378 shares of the transportation company's stock valued at $28,000 after purchasing an additional 256 shares during the last quarter. Cheviot Value Management LLC purchased a new stake in shares of Canadian Pacific Kansas City in the first quarter valued at about $30,000. Finally, Bernard Wealth Management Corp. bought a new position in Canadian Pacific Kansas City during the fourth quarter valued at about $31,000. Institutional investors and hedge funds own 72.20% of the company's stock.

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.