CP raises 2017 guidance on Q3 performance

Canadian Pacific announced yesterday it was revising its 2017 guidance upwards, after reporting third-quarter revenue increased 3 percent to CA$1.6 billion, and operating income rose 5 percent to CA$690 million compared with the same quarter last year.

CP reported adjusted diluted earnings per share rose 6 percent to CA$2.90 versus CA$2.73 last year. Net income soared 47 percent to CA$510 million from CA$347 million a year ago.

The Class I's operating ratio fell to 56.7 percent during the quarter compared with 57.7 percent in third-quarter 2016.

"Thanks to the hard work of our CP family and a disciplined, balanced approach in the marketplace and to our operations, we were able to produce another quarter of exceptional results," said President and Chief Executive Officer Keith Creel in a press release. "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."

CP now expects adjusted diluted earnings per share 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," said Creel.