Canadian Nattional Railway (CNI) reported 4Q2018 earnings that were very strong and confirm the turnaround in the operations after JJ Ruest took over the company almost a year ago.
CNI ended 2018 with EPS of C$5.5 and projects EPS of C$6.15 for 2019 which is 10%+ increase. North American economy continues to power along and outlook for most end markets including Inter-modal, Grain, Commodities, Chemicals, Oil and Gas all very strong for 2019. Autos and Lumber (Housing) could be softer than the peak in 2017/2018. CNI is trading at $83 (C$109) which is close to 17.5 times Forward EPS which is inline with long term averages. CNI increased the dividend by 18% to C$2.15 from C$1.82 and also plans to buy back 2-3 % of shares outstanding which are currently stand at 727M.
CNI 4Q2018 Earnings Release
CNI 4Q2018 Results Presentation
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