UPDATE: Genesee & Wyoming Posts Better-Than-Expected Q3 Earnings

Genesee & Wyoming

reported upbeat earnings for the third quarter. The Darien, Connecticut-based company posted quarterly net income of $72.7 million, or $1.27 per share, compared to $65.7 million, or $1.16 per share, in the year-ago quarter. Excluding non-recurring items, the company earned $1.21 per share. Its revenue climbed 7.8% to $432.5 million in the period. However, analysts were projecting earnings of $1.18 per share on revenue of $426 million. G&W's same railroad freight revenue surged to $313.9 million from $298.9 million, while same railroad non-freight revenue slipped to $99.6 million from $102.5 million. G&W's traffic rose 7.7% to 519,900 carloads in the quarter. Its income from operations rose to $123.1 million from $101.7 million in the year-ago quarter, while operating ratio narrowed to 71.5% from 74.7%. Jack Hellmann, President and CEO of G&W said, “Looking ahead, we remain optimistic about the strength of our North American business, which represents 80% of total revenues, and cautious about weakness in our Australian business, which represents 20% of total revenues, due to lower iron ore shipments resulting from a significant decline in iron ore prices. Meanwhile, we continue to actively evaluate several acquisition and investment opportunities in North America and internationally.” Genesee & Wyoming shares fell 1.14% to close at $93.75 yesterday.