Canadian National Railway (TSX:CNR) Stocks Buzz With Q4 Revenue Rise

Summary

  • Canadian National Railway reported a two per cent year-over-year (YoY) rise in its revenue for the fourth quarter ending December 31,.
  • It also posted a seven per cent drop in its full-year revenue for 2020.
  • The logistics company hiked its quarterly dividend by seven per cent to C$ 0.615 in the latest financial results, making it its 25th year of dividend increases.

 

Canadian National Railway (TSX:CNR) has created a buzz in the stock markets since announcing its latest financial results on Tuesday, January 26. The logistics company reported a two per cent year-over-year (YoY) rise in its revenue for the fourth quarter ending December 31, but a seven per cent drop in its full-year revenue for 2020.

Let’s take a closer at Canadian National Railway’s profile.

 

Canadian National Railway (TSX:CNR)

Current Stock Price: C$ 129.8


Canadian National’s stocks slid by nearly five per cent on Wednesday following the release of its latest financial results. This pulled down its year-to-date levels, reflecting a drop of over seven per cent this year.

The stocks, however, post a climb of over four per cent for the past one year and that of nearly 26 per cent for the last 10 months since the pandemic-triggered March lows.

The railway stock also currently records a trading volume of over one million for the last 10 days and of 1.31 million for the past month.

©Kalkine Group 2021

 

Canadian National Railway Latest Financial Results


The Montreal-headquartered railway company posted a revenue of C$ 3,656 million for the fourth quarter of 2020, which was an increase of C$ 72 million YoY. Despite the momentum in the fourth quarter, the impact of the coronavirus pandemic reflected in its full-year revenue of C$ 13,819 million for 2020, which was down C$ 1,098 million YoY.

Canadian National diluted EPS of C$ 1.43 was up 17 per cent YoY for Q4 2020, while its operating ratio of 61.4 per cent was down 4.6 per cent points. The company saw a 16 per cent YoY jump in its operating income of C$ 1,411 million in the latest quarter.

For the full year of 2020, Canadian National recorded a C$ 1,235-million increase YoY in its free cash flow of C$ 3,227 million. Its President and CEO JJ Ruest said that the company is “increasingly optimistic” about its recovery from pandemic-triggered disruptions in 2021, while also announcing plans of capital investments worth C$ 3 billion.

The company also hiked its quarterly dividend by seven per cent to C$ 0.615, making it its 25th year of dividend increases.

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