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
04-24-24 0936ET