CPKC forecasts solid earnings in 2024 after big profits drop last quarter

CPKC forecasts solid earnings in 2024 after a big drop in quarterly profits. The Canadian Pacific Kansas City (CPKC) logo is seen in this handout. THE CANADIAN PRESS / handout

Canadian Pacific Kansas City Ltd. says it expects its adjusted earnings to grow by double digits this year, following an almost 20 per cent year-over-year drop in net income last quarter.

The Calgary-based company says net income attributable to controlling shareholders totalled $1.02 billion in the quarter ended Dec. 31, down from $1.27 billion in the same period a year before.

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CPKC — the product of Canadian Pacific’s purchase of Kansas City Southern in April — says it boosted revenues to $3.78 billion last quarter from $2.46 billion a year earlier, which was before the purchase.

The railroad operator says its fourth-quarter diluted earnings per share fell 19 per cent to $1.10 versus $1.36 per share the previous year.

Analysts had predicted diluted earnings of $1.13 per share, according to financial markets data firm Refinitiv.

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CPKC is planning capital spending of $2.75 billion throughout 2024 and forecasting core adjusted combined diluted earnings per share will grow in the double digits from $3.84 per share in 2023.

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