Why Canadian National Railway (CNI) Shares Are Soaring Afterhours - Canadian National Railway (NYSE:CNI)

Canadian National Railway CNI reported a second-quarter revenue increase of 21% year-over-year to C$4.34 billion.
Adjusted EPS improved by 30% Y/Y to C$1.93.
CNI reported an operating income of C$1.77 billion (+28% Y/Y), and margin expanded by 231 bps to 40.7%, and an adjusted margin expanded by 260 bps to 41%.
The operating ratio was 59.3%, an improvement of 2.3-points, and the adjusted operating ratio of 59.0%, an improvement of 2.6-points.
Free cash flow for year-to-date was C$1.57 billion compared to C$1.28 billion for the same period in 2021.
Car velocity improved by 2% Y/Y, and through dwell (entire railroad, hours) improved by 6% Y/Y.
Fuel efficiency improved by 4% to a record of 0.838 US gallons of locomotive fuel consumed per 1,000 gross ton-miles (GTMs).
FY22 Outlook, reaffirmed: CNI expects to deliver ~15-20% adjusted diluted EPS growth. It targets an operating ratio below 60% and ROIC of ~15%.
It expects a free cash flow of C$3.7 billion - C$4.0 billion.
Price Action: CNI shares are trading higher by 15.88% at $135.34 during the post-market session on Tuesday.
Photo via Wikimedia Commons

Momentum34.15

Growth46.41

Quality29.30

Value57.23

Short

Medium

Long

Canadian National Railway Shares Soar On Q2 Performance, Clocks 21% Revenue Growth