Third-quarter revenue, net up at CP

Canadian Pacific Railway reported third-quarter adjusted diluted earnings per share of $2.90, up 6%, on revenue that was 3% higher at $1.6 billion.

The Calgary-based railroad said its operating ratio improved by 100 basis points to 56.7%.

“Volume momentum grew over the course of the quarter, setting us up for a strong finish to the year. As a result, we are raising our 2017 guidance,” said Keith Creel, CP President and Chief Executive.

Revenue grew to $1.6 billion from $1.55 billion in the same quarter a year ago, while operating income increased 5% to $690 million from $657 million.

Diluted earnings per share rose 50% to $3.50 from $2.34 and adjusted diluted earnings per share advanced 6% to $2.90 from $2.73.

The company revised its 2017 guidance upwards, and expects adjusted diluted EPS to grow in the double-digits from full-year 2016 adjusted diluted EPS of $10.29.

“We remain grounded in our foundations of precision railroading and continue to pursue sustainable, profitable growth, which has us well-positioned to finish the year with strong momentum leading into 2018 and beyond,” Creel said.