Canadian National (TSX:CNR) sees Q4 diluted EPS soar 18%. A buy alert?

3 min read | January 28, 2022 12:30 AM AEDT | By Kajal Jain

Canadian National (TSX:CNR) sees Q4 diluted EPS soar 18%. A buy alert? — Image source: ©2022 Kalkine Media®

Canadian National’s (TSX:CNR) performance in Q4 FY2021

The Montreal-headquartered railway giant saw its fourth-quarter revenue at C$ 3.75 billion in the fiscal year 2021, a surge of C$ 97 million year-over-year (YoY).

CN reported operating revenue of C$ 1.56 billion in the latest quarter, up by 11 per cent YoY. On the other hand, its adjusted operating income jumped by 12 per cent YoY to C$ 1.57 billion in Q4 FY2021.

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The railroad company, which currently has a return on equity (ROE) of 23.67 per cent, recorded diluted earnings per share (EPS) of C$ 1.69 apiece, 18 per cent up from the prior-year quarter. CN posted an increase of 20 per cent YoY to C$ 1.71 apiece in its fourth quarter’s adjusted diluted EPS.

Data source: Canadian National Railway Company

In addition, the railroad operator also stated that its Board of Directors approved a share repurchase and a dividend hike of 19 per cent for the year 2022. CN is scheduled to pay a quarterly dividend of C$ 0.733 per share on March 31.

Canadian National Railway’s stock performance

Stocks of Canadian National closed at C$ 150.56 apiece on Wednesday, January 26, with 3.2 million shares exchanging hands. The railroad scrip expanded by nearly 13 per cent in the past six months.

Bottom line

Canadian National Railway expects its adjusted diluted EPS to increase by 20 per cent in 2022. The railway company is also planning to invest about 17 per cent of its revenues in its capital program this year.

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