MONTREAL – Canadian National Railway (TSX:CNR) (NYSE:CNI) reported third-quarter results that beat analyst expectations, sending shares up 2% in after-hours trading on Tuesday.
The railroad operator posted adjusted earnings per share of C$1.72, surpassing the consensus estimate of C$1.70. Revenue came in at C$4.11 billion, above analyst projections of C$4.08 billion.
Revenue ton miles, a key industry metric, increased 2% YoY to 56,548 million. Total freight revenues rose 3% to C$3.92 billion compared to the same period last year.
“Our scheduled operating plan demonstrated its resilience in the third quarter, allowing us to adapt our operations to challenges posed by wildfires and prolonged labor issues,” said Tracy Robinson, President and CEO of CN. “Our operations recovered quickly and the railroad is running well.”
For the full year 2024, CN reiterated its guidance for adjusted EPS growth in the low single-digit range. The company also maintained its capital expenditure forecast of approximately C$3.5 billion.
Looking further ahead, CN continues to target compound annual adjusted EPS growth in the high single-digit range over the 2024-2026 period.
The company’s operating ratio, a measure of efficiency, increased 1.1 percentage points YoY to 63.1% in Q3.
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