Canadian Pacific Earnings Boosted by Tax Refund -- Earnings Review

By Imani Moise Features Dow Jones Newswires

Canadian Pacific Railway Ltd. reported fourth-quarter earnings Thursday after the closing bell. Here's what you need to know:

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EARNINGS: Adjusted earnings per share rose to $3.22 Canadian dollars per share ($2.59) compared with C$3.04 a year earlier and topping analyst expectations of C$3.20.

REVENUE: Sales also topped views rising 4.6% to C$1.71 billion, slightly better than the C$1.7 billion consensus.

TAX IMPACT: On an as reported basis, earnings more than doubled to C$6.77 per share due to a tax benefit of C$527 million from the recently enacted U.S. tax legislation.

OUTLOOK: For fiscal 2018, the railroad said it expects revenue growth in the mid-single digits and adjusted earnings-per-share growth in the low-double digits. Analysts expect revenue and adjusted EPS to increase 5% and 15%, respectively.

STOCK MOVE: Shares were unchanged during post-market trading after edging 0.4% higher to C$226.56 during Thursday trading. The stock has risen 25% over the past year.

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Write to Imani Moise at imani.moise@wsj.com

(END) Dow Jones Newswires

January 18, 2018 16:50 ET (21:50 GMT)