Canadian National lowers FY24 adjusted EPS view to up mid to high single-digits

Previous adjusted EPS view was up 10%. The company said, “Accounting for second quarter results and the ongoing volume impact of the current labor uncertainty, CN now expects to deliver adjusted diluted EPS growth in the mid to high single-digit range (compared to its April 23, 2024 expectation of approximately 10%). The Company continues to expect to invest approximately C$3.5 billion in its capital program, net of amounts reimbursed by customers. The Company now expects adjusted return on invested capital (ROIC) to be approximately 15% (compared to its April 23, 2024 expectation to be within the targeted range of 15%-17%). CN reiterates its longer-term financial perspective and continues to target compounded annual diluted EPS growth in the range of 10%-15% over the 2024-2026 period driven by growing volumes more than the economy, pricing above rail inflation and incrementally improving efficiency, all of which assumes a supportive economy. CN continues to target ROIC in the range of 15%-17%.”