Earnings Reports

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Railway companies have long been a favorite of investor legend Warren Buffett. We get to guage the underlying strength he looks for with earnings from railway giants $CSX, Canadian Pacific $CP and Kansas City Southern $KSU.

CSX Railway

 

CSX inc $CSX Reports Earnings Tuesday after the market close.

Forecast: EPS to rise 14% to 56 cents with a 5% decline in revenue to $2.88 billion. This report will be likely be full of past performance comparisons as its the first report after CSX named James Foote as the new president and CEO in December following the death of former chief and legendary railroader Hunter Harrison.

Canadian Pacific $CP Reports Thursday before the market close.

Forecast: EPS to rise 14% to $2.59 and revenue to rise 9% to $1.33 billion. This is compared to $1.55 billion or $10.29 per share in 2016. For 2018, analysts forecast $1.84 billion or $13 per share. Investors will be watching the outlook for comments on the potential dismantling of the North American Free Trade Agreement (NAFTA) and the risk to Canada’s railways. See The NAFTA effect on Canadian railways for analysis of the risks.

Kansas City Southern $KSU Reports on Friday before the market opens

Forecast: EPS to rise 21% to $1.35 and revenue to rise 10% to $657 million. $KSU is dominate on the Gulf Coast but steamed through Hurricane Harvey. With the rise in oil and natural gas prices in the past three months expectations are that Frack-sand and crude-oil deliveries to and from the Eagle Ford and Permian Basin shale formations have increased markedly. KSU also has a NAFTA risk with the new automotive manufacturing facilities  in Mexico boosting cross-border traffic. 

What would Warren Buffett do?

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