Canadian Pacific Kansas City 1Q Profit Slips, Revenue Misses Estimates

By Adriano Marchese

Canadian Pacific Kansas City profit fell 3%, while adjusted earnings and revenue growth missed expectations in the first quarter despite improved operating ratio and volumes.

The Canadian railroad company posted a lower net income of 774 million Canadian dollars ($566.5 million), or C$0.83 a share, down from C$800 million, or C$0.86 a share, in the comparable quarter a year ago.

Core adjusted earnings were C$0.93 a share, just shy of analyst expectations of C$0.94 a share, according to FactSet.

CPKC revenues rose to C$3.52 billion from C$2.27 billion, which was boosted by contribution of its acquisition of Kansas City Southern a year ago. Analysts were expecting a rise to C$3.54 billion.

Reported operating ratio rose by 400 basis points to 67.4% from 63.4% a year earlier. The operating ratio is a key industry metric that determines a company's efficiency by comparing operating expenses to its net sales.

The railroad's volumes increased 1% on a combined basis.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

April 24, 2024 09:36 ET (13:36 GMT)

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