Shares of Canadian Pacific Kansas City were headed in the right direction Thursday after the railway company reported its first results since officially merging earlier this month.
The company reported revenue of $2.27 billion, up 23% from $1.84 billion in the same period last year, and earnings of $0.90 per share, up from $0.67. Those figures fell short of Street expectations of $2.36 billion and $0.93 per share, respectively.
Volume, which is measured in revenue ton-miles, increased by 11%.
That said, what investors are watching for is how the company will perform now that the combination of Canadian Pacific and Kansas City Southern is complete. Shares of the company improved 0.8% to $78.04.
"In our final quarter before our historic combination, the CP team delivered solid results driven by our investment in capacity, service and continued focus on safety," CPKC CEO Keith Creel said in a statement.
"Our strong bulk franchise, fueled by a robust Canadian grain harvest, plus competitive service offerings in intermodal helped produce these results providing momentum as we begin our journey as CPKC."
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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