Why Is Canadian Pacific Kansas City Stock Falling Today?
Portfolio Pulse from Akanksha Bakshi
Canadian Pacific Kansas City Limited (NYSE:CP) reported a 55.3% year-over-year revenue growth for Q1 2024, reaching CA$3.52 billion but missing the consensus estimate of CA$3.54 billion. The operating ratio worsened to 67.4% from 63.4%, and adjusted EPS of CA$0.93 missed the consensus by CA$0.01. Despite these misses, operating income and net cash from operations saw significant increases. However, CP's stock fell by 5.75% to $82.68, possibly due to the missed revenue and EPS expectations and increased operating ratio.
April 24, 2024 | 5:51 pm
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Canadian Pacific Kansas City Limited reported a 55.3% revenue growth but missed revenue and EPS estimates for Q1 2024, leading to a 5.75% drop in stock price.
CP's stock price drop is directly related to the missed revenue and EPS estimates for Q1 2024, despite the year-over-year growth. The increase in operating ratio indicates higher expenses relative to revenue, which may concern investors about operational efficiency.
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