Canadian National Railway Co. (CNI, CNR.TSX) lowered its full-year guidance after markets closed on Tuesday as it posted third-quarter revenue which fell short of analysts’ estimates while adjusted earnings surpassed projections.
The Montreal-based company, which transports more than 250 billion Canadian dollars ($190.9 billion) worth of goods annually, reported revenue of 3.83 billion dollars ($2.92 billion) in the three months ended Sept, 30, up from 3.69 billion dollars in the corresponding quarter of the prior year. This was below the consensus estimate of analysts polled by Capital IQ for 3.87 billion dollars.
The lion’s share of sales came from freight revenue, worth 3.62 billion dollars. Of this, intermodal revenue was up 13% at 1.02 billion dollars, petroleum and chemicals revenue was 18% higher at 788 million dollars and grain and fertilizers revenue was down 3% at 552 million dollars.
Adjusted earnings per share came in at 1.66 Canadian dollars, up from 1.50 dollars a year earlier and ahead of the Street’s projection of 1.62 dollars.
“CN [Canadian National Railway Company] delivered strong results, despite a softening economy,” JJ Ruest, chief executive officer of CN, said. “Our team of experienced railroaders swiftly aligned resources with the weaker demand to achieve solid efficiency gains. We remain committed to our long-term agenda of growing faster than the economy at low incremental cost, and to taking Scheduled Railroading to the next level by deploying advanced operating technology.”
For the full year, the company said it is now targeting adjusted earnings per share growth in the high single-digit range, compared with previous guidance issued in July which had projected low double-digit growth in adjusted earnings. The updated guidance reflects a deterioration in North American rail demand and an assumption of slightly negative volume growth in 2019 in terms of revenue ton-miles, the company said.
This post was originally published on Health Opinion