CN Rail Positioned for Higher Earnings, Cash Flow Without Extra Capex -- Market Talk
Dow Jones2026/07/27 16:371237 ET - CN Rail is operating in an improving freight environment, and 2H may still hold some opportunity for extra growth. In an RBC report, Walter Spracklin says that the magnitude of the recent raise came in higher than expected, and notes that "if we assume the EPS guide equates to 7% y/y growth, this implies EPS of $8.16, well above consensus of $7.94 and our $8.05." Spracklin says the low-single-digit volume guide implies no acceleration in growth in 2H, but "giving further potential upside if conditions continue to improve (which we believe they will)." Spracklin adds that CN Rail is achieving this growth without increasing its capital spending, as past investments created enough capacity to support higher volumes which could boost free cash flow. (adriano.marchese@wsj.com)
(END) Dow Jones Newswires
July 27, 2026 12:37 ET (16:37 GMT)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
PNC Bank Launches USDC Payment Acceptance for Corporate Clients
British Pound tumbles below 1.33 post hot US CPI, Fed hawkish rhetoric
Morgan Stanley warns: old storage prices are peaking, supply and demand may turn relaxed by 2028
Morgan Stanley pointed out that after the U.S. midterm elections, it is expected that about 20% of the new data center capacity in the United States originally planned for 2028 will be postponed to 2029. This may cause a "gap" in the supply chain in 2028, resulting in the risk of excess inventory of legacy storage. Legacy storage is less bound by long-term fixed price contracts, so a narrowing supply-demand gap could lead to significant price fluctuations. The above analysis refers only to legacy storage, including DDR3/4, SLC/MLC NAND, and NOR flash.
Crypto prices
More
