-- Canadian Pacific Kansas City (CP.TO, CP) after the close Wednesday reported a 6.4% year-over-year decline in first-quarter adjusted net income as lower revenue led the company to miss analysts' estimates.
Core adjusted net income, excluding most one-time items, for the three months ended March 31 ,was C$929 million, or C$1.04 per share, down from C$992 million, or C$1.06 per share, a year earlier. The result missed FactSet's consensus analysts estimate of C$1.07 per share.
Revenue for the quarter fell 2.5% year over year to C$3.70 billion from C$3.78 billion, also below FactSet's estimate of C$3.75 billion.
The railway's core operating ratio, an efficiency measure where lower is better, rose 50 basis points to 63% from 62.5%.
Volumes, measured by revenue ton-miles, rose 2%, while the core adjusted operating ratio increased 50 basis points to 63.0% from 62.5%.
"Our talented team of world-class railroaders executed our precision scheduled railroading plan with discipline, driving meaningful improvements in network fluidity, terminal performance and other key operating metrics, while delivering solid first-quarter results," said chief executive Keith Creel.
"Despite ongoing market and macroeconomic headwinds, we delivered volume growth demonstrating the resiliency and competitive advantage of our unrivalled North American network," he added.
Additionally, on Tuesday, the company said its board approved a 17.5% increase in its quarterly dividend to 26.8 Canadian cents per share from 22.8 cents per share.
Company's shares dropped US$1.18 to US$83.10 in after-hours trade on Nasdaq after closing down C$3.34 at C$115.30 on Toronto Stock Exchange.