Canadian Pacific Railway's (TSE:CP) revenue soared 10 per cent in the second quarter but despite its net income more than doubling, the company missed expectations on the bottom line.
For the rest of the year, CP Rail expects to produce high single-digit revenue growth, which is consistent with what the street is predicting. The Calgary-based railway also estimates its earnings per share will rise 40 per cent over last fiscal year's $4.34 per share. However, the $6.08 per share forecast falls short of the current analyst consensus of $6.26 per share.
CP also expects an operating ratio in the low 70 per cent range for fiscal 2013.
CP recorded $1.5 billion in revenue during the quarter, compared to $1.4 billion for the same period a year ago and in line with analyst expectations.
CP's operating income grew 75 per cent to $420 million from $239 million last year. The operating ratio was 71.9 per cent, a 1,060 basis-point improvement.
The company's net income increased 138 per cent to $252 million, or $1.43 per share, versus $103 million, or 60 cents per share in the same prior-year period. The result fell six cents short of the street's forecast.
CP slid 79 cents to $129.39 in early trading on Wednesday.