Canadian National Railway Company (CNI) Q3 2024 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 23 2024
0mins
Should l Buy CNI?
Source: Newsfilter
Conference Call Overview: Canadian National Railway Company held its Q3 2024 earnings conference call on October 22, 2024, featuring key executives discussing financial and operational results.
Forward-Looking Statements: The call included forward-looking statements that are subject to risks and uncertainties, which may lead to actual results differing from projections.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CNI?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CNI
Wall Street analysts forecast CNI stock price to rise
15 Analyst Rating
9 Buy
6 Hold
0 Sell
Moderate Buy
Current: 107.300
Low
105.00
Averages
113.56
High
136.77
Current: 107.300
Low
105.00
Averages
113.56
High
136.77
About CNI
Canadian National Railway Company is a transportation and logistics company. The Company's services include rail, intermodal, trucking, and supply chain services. The Company’s rail services offer equipment, customs brokerage services, transloading and distribution, private car storage and others. Its intermodal container services help shippers expand their door-to-door market reach with about 23 strategically placed intermodal terminals. Its intermodal services include temperature-controlled cargo, port partnerships, logistics park, custom brokerage, transloading and distribution, and others. Its trucking services include door-to-door service, import and export dray, interline services, and specialized services. Its supply chain services offer comprehensive services across a range of industries and product types. The Company transports more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bill Gates' Philanthropic Investment Strategy
- Charitable Donation Scale: Bill Gates has donated the vast majority of his wealth to the Gates Foundation over the decades, planning to give away nearly all of his remaining wealth over the next 20 years, reflecting his strong commitment to philanthropy.
- Investment Concentration: Approximately 59% of the Gates Foundation's marketable equity portfolio is concentrated in three major stocks, with Berkshire Hathaway accounting for 28.5%, indicating a highly concentrated investment strategy favoring quality assets.
- Berkshire Hathaway Performance: As of the third quarter, the foundation holds 21.8 million shares of Berkshire Hathaway, valued at about $11 billion, and despite market fluctuations, the foundation plans to continue holding these quality assets.
- WM and Canadian National Railway: The Gates Foundation also holds stakes in WM and Canadian National Railway, representing 17% and 13.3% of its assets respectively, both companies possess strong market positions and stable profitability in their respective industries, showcasing Gates' focus on long-term investments.
See More
Analysis of Gates Foundation Investment Strategy
- Portfolio Concentration: The Gates Foundation's investment portfolio is heavily concentrated, with approximately 59% of marketable equities held in just three outstanding value stocks, reflecting Bill Gates' investment style influenced by Warren Buffett, which may yield stable returns in the future.
- Buffett's Annual Donations: Warren Buffett donates a significant number of shares to the Gates Foundation each year, with last year's contribution amounting to 9.4 million Class B shares, requiring the foundation to utilize the entire value of these donations plus 5% of its other assets annually, ensuring a continuous influx of funds for philanthropic efforts.
- WM's Market Advantage: The Gates Foundation holds 28.9 million shares of WM, valued at approximately $6.6 billion, benefiting from its dominant position with over 260 landfills, which provides a competitive edge in the slow-growing waste management industry, allowing for steady profit growth in the future.
- Growth Potential of Canadian National Railway: The foundation owns 51.8 million shares of Canadian National Railway, worth about $5.1 billion, and despite facing flat revenue challenges, the company is expected to enhance earnings per share through a share repurchase program and reduced capital expenditures, showcasing long-term investment potential.
See More
CN Reports Second-Best Grain Movement in January
- Record Grain Movement: In January 2026, CN shipped over 2.72 million metric tonnes of grain, marking its second-best performance for the month, just behind the all-time record of 2.85 million metric tonnes set in 2020, showcasing the company's robust capabilities in grain logistics.
- Weather Resilience: Despite facing extreme cold weather across its network, CN successfully adjusted its operations to safely and efficiently transport Canadian grain to market, supporting farmers and supply chain partners, which highlights its operational resilience.
- Winter Operations Plan: CN continues to implement its winter operations plan, employing proactive solutions to ensure transportation efficiency, thereby reinforcing its leadership position in the North American transportation sector.
- Economic Impact: As a major transportation provider in North America, CN safely transports over 300 million tons of natural resources and manufactured goods annually, connecting Canada's eastern and western coasts with the U.S. Midwest and Gulf Coast, contributing to sustainable trade and community prosperity.
See More
CN Announces Filing of 2025 Annual Financial Statements
- Financial Report Release: CN has filed its 2025 Annual Financial Statements and Management's Discussion and Analysis with Canadian and U.S. securities regulators, enhancing transparency and compliance, which boosts investor confidence.
- Investor Accessibility: Shareholders can request printed copies of CN's 2025 financial statements free of charge, reflecting the company's commitment to shareholder engagement and improving investor relations through enhanced information disclosure.
- Transportation Capacity Overview: CN safely transports over 300 million tons of natural resources and manufactured goods annually, underscoring its critical role in the North American economy and ensuring supply chain stability and efficiency, which supports sustainable regional development.
- Network Coverage Advantage: With nearly 20,000 miles of rail network connecting Canada's East and West coasts with the U.S. Midwest and Gulf Coast, CN strengthens its competitive position in the North American market, facilitating regional trade prosperity.
See More
RBC Lowers Price Target for Canadian National Railway
- Price Target Adjustment: RBC has lowered its price target for Canadian National Railway by $2.00 to $151, indicating a cautious outlook on the company's future performance, which may affect investor confidence.
- Market Reaction Anticipation: This price adjustment could lead to short-term volatility in CNR.TO's stock, prompting investors to monitor upcoming earnings reports to assess changes in the company's fundamentals.
- Industry Impact: As a major North American railway operator, fluctuations in Canadian National Railway's stock price may have a ripple effect on the entire transportation sector, influencing investment decisions of related companies.
- Analyst Sentiment: RBC's adjustment reflects a conservative view on the railway industry's prospects, potentially signaling concerns over economic slowdown and reduced transportation demand.
See More
Canadian National Railway Reports Strong Q4 Earnings
- Earnings Performance: Canadian National Railway reported a non-GAAP EPS of C$2.08 for Q4, with revenue reaching C$4.46 billion, reflecting a 2.3% year-over-year growth that underscores the company's enhanced profitability amid stable transportation demand.
- Operational Efficiency Improvement: The operating ratio improved to 61.2%, a 1.4-point increase from last year, while the adjusted operating ratio stood at 60.1%, up 2.5 points, indicating significant progress in cost control and operational efficiency.
- Volume Growth: Gross ton miles (GTMs) increased by 5% to 118,923 million, and revenue ton miles (RTMs) rose by 4% to 61,707 million, demonstrating the company's strong performance in transportation capacity and market demand, further solidifying its market position.
- Future Investment Plans: The company plans to invest approximately C$2.8 billion in its capital program in 2026, and while volume growth is expected to be flat, adjusted diluted EPS growth is anticipated to slightly exceed volume growth, reflecting confidence in future development.
See More
Bill Gates' Philanthropic Investment Strategy
- Charitable Donation Scale: Bill Gates has donated the vast majority of his wealth to the Gates Foundation over the decades, planning to give away nearly all of his remaining wealth over the next 20 years, reflecting his strong commitment to philanthropy.
- Investment Concentration: Approximately 59% of the Gates Foundation's marketable equity portfolio is concentrated in three major stocks, with Berkshire Hathaway accounting for 28.5%, indicating a highly concentrated investment strategy favoring quality assets.
- Berkshire Hathaway Performance: As of the third quarter, the foundation holds 21.8 million shares of Berkshire Hathaway, valued at about $11 billion, and despite market fluctuations, the foundation plans to continue holding these quality assets.
- WM and Canadian National Railway: The Gates Foundation also holds stakes in WM and Canadian National Railway, representing 17% and 13.3% of its assets respectively, both companies possess strong market positions and stable profitability in their respective industries, showcasing Gates' focus on long-term investments.
See More
Analysis of Gates Foundation Investment Strategy
- Portfolio Concentration: The Gates Foundation's investment portfolio is heavily concentrated, with approximately 59% of marketable equities held in just three outstanding value stocks, reflecting Bill Gates' investment style influenced by Warren Buffett, which may yield stable returns in the future.
- Buffett's Annual Donations: Warren Buffett donates a significant number of shares to the Gates Foundation each year, with last year's contribution amounting to 9.4 million Class B shares, requiring the foundation to utilize the entire value of these donations plus 5% of its other assets annually, ensuring a continuous influx of funds for philanthropic efforts.
- WM's Market Advantage: The Gates Foundation holds 28.9 million shares of WM, valued at approximately $6.6 billion, benefiting from its dominant position with over 260 landfills, which provides a competitive edge in the slow-growing waste management industry, allowing for steady profit growth in the future.
- Growth Potential of Canadian National Railway: The foundation owns 51.8 million shares of Canadian National Railway, worth about $5.1 billion, and despite facing flat revenue challenges, the company is expected to enhance earnings per share through a share repurchase program and reduced capital expenditures, showcasing long-term investment potential.
See More
CN Reports Second-Best Grain Movement in January
- Record Grain Movement: In January 2026, CN shipped over 2.72 million metric tonnes of grain, marking its second-best performance for the month, just behind the all-time record of 2.85 million metric tonnes set in 2020, showcasing the company's robust capabilities in grain logistics.
- Weather Resilience: Despite facing extreme cold weather across its network, CN successfully adjusted its operations to safely and efficiently transport Canadian grain to market, supporting farmers and supply chain partners, which highlights its operational resilience.
- Winter Operations Plan: CN continues to implement its winter operations plan, employing proactive solutions to ensure transportation efficiency, thereby reinforcing its leadership position in the North American transportation sector.
- Economic Impact: As a major transportation provider in North America, CN safely transports over 300 million tons of natural resources and manufactured goods annually, connecting Canada's eastern and western coasts with the U.S. Midwest and Gulf Coast, contributing to sustainable trade and community prosperity.
See More
CN Announces Filing of 2025 Annual Financial Statements
- Financial Report Release: CN has filed its 2025 Annual Financial Statements and Management's Discussion and Analysis with Canadian and U.S. securities regulators, enhancing transparency and compliance, which boosts investor confidence.
- Investor Accessibility: Shareholders can request printed copies of CN's 2025 financial statements free of charge, reflecting the company's commitment to shareholder engagement and improving investor relations through enhanced information disclosure.
- Transportation Capacity Overview: CN safely transports over 300 million tons of natural resources and manufactured goods annually, underscoring its critical role in the North American economy and ensuring supply chain stability and efficiency, which supports sustainable regional development.
- Network Coverage Advantage: With nearly 20,000 miles of rail network connecting Canada's East and West coasts with the U.S. Midwest and Gulf Coast, CN strengthens its competitive position in the North American market, facilitating regional trade prosperity.
See More
RBC Lowers Price Target for Canadian National Railway
- Price Target Adjustment: RBC has lowered its price target for Canadian National Railway by $2.00 to $151, indicating a cautious outlook on the company's future performance, which may affect investor confidence.
- Market Reaction Anticipation: This price adjustment could lead to short-term volatility in CNR.TO's stock, prompting investors to monitor upcoming earnings reports to assess changes in the company's fundamentals.
- Industry Impact: As a major North American railway operator, fluctuations in Canadian National Railway's stock price may have a ripple effect on the entire transportation sector, influencing investment decisions of related companies.
- Analyst Sentiment: RBC's adjustment reflects a conservative view on the railway industry's prospects, potentially signaling concerns over economic slowdown and reduced transportation demand.
See More
Canadian National Railway Reports Strong Q4 Earnings
- Earnings Performance: Canadian National Railway reported a non-GAAP EPS of C$2.08 for Q4, with revenue reaching C$4.46 billion, reflecting a 2.3% year-over-year growth that underscores the company's enhanced profitability amid stable transportation demand.
- Operational Efficiency Improvement: The operating ratio improved to 61.2%, a 1.4-point increase from last year, while the adjusted operating ratio stood at 60.1%, up 2.5 points, indicating significant progress in cost control and operational efficiency.
- Volume Growth: Gross ton miles (GTMs) increased by 5% to 118,923 million, and revenue ton miles (RTMs) rose by 4% to 61,707 million, demonstrating the company's strong performance in transportation capacity and market demand, further solidifying its market position.
- Future Investment Plans: The company plans to invest approximately C$2.8 billion in its capital program in 2026, and while volume growth is expected to be flat, adjusted diluted EPS growth is anticipated to slightly exceed volume growth, reflecting confidence in future development.
See More
