Despite these setbacks, CPKC posted a revenue gain of 7% year over year. The four sectors that made the biggest impact were grains, energy, plastics and chemicals, and revenue grew by 11%. CPKC says wheat shipments to Mexico from Canada and the American Prairies over the past 12 months were exactly the kind of “synergy win” it expected when the former Canadian Pacific acquired Kansas City Southern back in 2021. only one is found in Canada, the United States and Mexico.
CNR CEO Tracy Robinson commented on the railway's operational challenges. “Our planned operation showed its resilience in the third quarter, allowing us to adapt our operations to the challenges caused by wildfires and long-term staffing problems,” he said. “Our operations recovered quickly and the railway is running smoothly. As we close out 2024, we will continue to focus on value recovery, growth, and ensuring our resources keep pace with demand. “
CNR's revenue was up 3% year over year; however, the increased costs meant that the company's operating ratio increased by 1.1% to 63.1% (indicating that costs are increasing as a proportion of revenue). The railroad announced that it will increase its dividend from $0.79 to $0.845. This increase of nearly 7% is in line with CNR's mission to profitably increase its dividend payments each year.
For more information on these railroads, see my article about Canadian rail stocks on MillionDollarJourney.ca.
The best Canadian stocks
It's a tough day for Rogers
Thursday's earnings miss left some Rogers shareholders shaking their heads.
Rogers highlights the benefits
Here's what a major cell phone company reported this week:
- Rogers Communications (RCI/TSX): Earnings per share of $1.42 (vs. $1.34 forecast) and revenue of $5.13 billion (vs. $5.17 forecast).
Although the strong earnings numbers took the edge off the woes, Rogers' stock price fell 3% on Thursday. Lower-than-expected numbers of new wireless customers were at the root of lower revenue growth. Canada's oligopolistic wireless market remains unfairly competitive as Rogers, Telus and Bell all continue to fight for market share. That competition is hurting profit margins for all three telecom giants right now. (Unlike years past, when all three telcos were happy to charge some of the highest wireless plan fees in the world.)
One highlight for Rogers was direct sports revenue, which was up 11% from the previous quarter. Rogers has doubled down on his sports media strategy in the past few years and now owns a controlling stake:
- Toronto Blue Jays in Major League Baseball (MLB)
- Toronto Maple Leafs in the National Hockey League (NHL)
- Toronto Raptors in the National Basketball Association (NBA)
- Toronto FC in Major League Soccer (MLS)
- Toronto Argonauts in the Canadian Football League (CFL)
- SportsNet, Canada's largest sports network
- Toronto's Rogers Center and Scotiabank Arena venues
- Naming rights for sports venues in Edmonton, Toronto and Vancouver
- National NHL media rights in Canada
- Local media rights to the NHL's Vancouver Canucks, Calgary Flames and Edmonton Oilers
- Share local media rights to the Maple Leafs and Raptors
- Several minor league franchises and sports (gaming) teams.
Despite having all of those household name sports goods, it's important to note that Rogers' wireless and cable divisions were responsible for nearly 90% of its revenue, with sports and media making up the rest.
Source link
