Genesee & Wyoming (GWR) Misses Q3 EPS by 3c, Beats on Revenues; 'Outlook Remains Positive'

Genesee & Wyoming (NYSE: GWR) reported Q3 EPS of $0.80, $0.03 worse than the analyst estimate of $0.83. Revenue for the quarter came in at $576 million versus the consensus estimate of $573.7 million.

Mr. Hellmann continued, “Our outlook for G&W remains positive. In North America, although we continue to face weather-driven variability in our grain and coal shipments, broader economic activity is solid and we expect to benefit from a tightening trucking market. In Australia, we are pursuing multiple new projects amidst an improved commodity price environment. In the U.K., multiple revenue and efficiency measures have taken effect and we see a good peak season for intermodal shipments in the months ahead. Finally, we continue to generate strong free cash flow and to evaluate a range of acquisition and investment opportunities across our global footprint of railroads.”

Third Quarter 2017 Consolidated Highlights Compared with Third Quarter 2016

• Operating revenues increased 15.2% to $576.9 million from $501.0 million.
• Reported operating income increased 21.4% to $111.5 million; Adjusted operating income increased 20.3% to $115.9 million.(1)
• Reported diluted earnings per common share (EPS) decreased 18.4% to $0.80 with 62.5 million weighted average shares outstanding, compared with reported diluted EPS in the third quarter of 2016 of $0.98 with 58.2 million weighted average shares outstanding; Adjusted diluted EPS decreased 1.2% to $0.81.(1)
• Net cash provided by operating activities increased $46.8 million; Free cash flow and Free cash flow attributable to G&W increased $42.8 million.(1)

Third Quarter Segment Highlights

• North America: Operating revenues from G&W\'s North American Operations increased 2.8% to $318.9 million from $310.2 million, primarily due to new operations. Reported operating income from G&W\'s North American Operations decreased 5.8% to $82.1 million; Adjusted operating income from G&W\'s North American Operations decreased 5.9% to $83.0 million.(1)
• Australia: Operating revenues from G&W\'s 51.1% owned Australian Operations increased 50.1% to $81.3 million from $54.2 million, primarily due to new operations as well as an increase in metallic ores revenues and agricultural products revenues. Reported operating income from G&W\'s Australian Operations increased to $22.3 million from $4.4 million; Adjusted operating income from G&W\'s Australian Operations increased to $21.8 million from $7.4 million.(1)
• U.K./Europe: Operating revenues from G&W\'s U.K./European Operations increased 29.3% to $176.7 million from $136.7 million, primarily due to new operations. Reported operating income from G&W\'s U.K./European Operations increased to $7.1 million from $0.3 million; Adjusted operating income from G&W\'s U.K./European Operations increased to $11.0 million from $0.7 million.(1)

For earnings history and earnings-related data on Genesee & Wyoming (GWR) click here.

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