CP Q2 Profit Tops Estimates; Revenue Down 12%; Reaches Agreement With Future CEO

(RTTNews) - Canadian Pacific Railway Limited (CP.TO, CP) reported that its second-quarter earnings per share declined 9 percent to C$2.15 from C$2.36, last year. Adjusted EPS decreased 16 percent to C$2.05 from C$2.45 due in large part to a 12 percent drop in revenues. On average, 22 analysts polled by Thomson Reuters expected the company to report profit per share of C$2.01 for the quarter. Analysts' estimates typically exclude special items.

Second-quarter revenues fell 12 percent year-over-year to C$1.45 billion from C$1.65 billion. Analysts expected revenue of C$1.47 billion for the quarter.

"Revenue challenges in the second quarter included lower-than-anticipated bulk volumes, devastating wildfires in northern Alberta and a strengthening Canadian dollar," said CP's CEO Hunter Harrison.

Canadian Pacific Railway also announced that its Board has reached an agreement with next chief executive officer, Keith Creel. Currently president and chief operating officer, Creel will become president and CEO on July 1, 2017. CP also has reached a three-year, post-retirement consulting agreement with Harrison.