Genesee & Wyoming (GWR) Tops Q3 EPS by 7c, Revenues Beat

Genesee & Wyoming (NYSE: GWR) reported Q3 EPS of $1.23, $0.07 better than the analyst estimate of $1.16. Revenue for the quarter came in at $603.3 million versus the consensus estimate of $593.76 million.

Operating revenues increased 4.6% to $603.3 million from $576.9 million.
Reported operating income increased 16.4% to $127.8 million; Adjusted operating income increased 14.3% to $130.5 million.(1)
Reported diluted earnings per common share (EPS) increased 45.0% to $1.16 with 60.1 million weighted average shares outstanding, compared with reported diluted EPS in the third quarter of 2017 of $0.80 with 62.5 million weighted average shares outstanding; Adjusted diluted EPS increased 51.9% to $1.23.(1)
G&W completed its previously authorized $300 million share repurchase plan as of October 19, 2018; G&W authorized a new $500 million share repurchase plan on October 25, 2018.

Jack Hellmann, Chairman, President and CEO of G&W, commented, "Our financial results for the third quarter of 2018 were strong, with reported diluted earnings per share increasing 45% and adjusted diluted earnings per share increasing 52%. Our North American financial results (approximately 80% of operating income) were uniformly positive led by 11.5% revenue growth, an operating ratio that improved around 300 basis points to 71.2%, and a 25% increase in operating income. Meanwhile, third quarter results in our Australia Region (approximately 15% of operating income) and U.K./Europe Region (approximately 5% of operating income) were slightly below our expectations."

"Our commercial outlook remains positive in all three of our geographic segments, however, we expect our fourth quarter financial results to be adversely impacted by three items. In North America, Hurricane Michael struck our Bay Line Railroad and customer facilities in Panama City, Florida in October, which will result in higher expenses and lower shipment levels. In Australia, we expect delays in certain coal shipments in New South Wales that will shift into early 2019. And in the U.K., where our restructuring is proceeding on plan, our ability to staff new and existing business is being constrained by near-term locomotive driver shortages, which will squeeze fourth quarter margins as we further ramp up training and hiring."

"We continue to actively analyze investment opportunities in multiple geographies, as well as investments in our own shares. In mid-October, we completed our previously announced $300 million share repurchase program, and our Board recently approved a share repurchase program for an additional $500 million of Common Stock. We expect to execute this program opportunistically, as we evaluate the intrinsic value of our shares, the relative attractiveness of acquisitions and investments, as well as our leverage profile and overall business conditions."

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

You May Also Be Interested In

• Nomura/Instinet Upgrades Genting Singapore (GENS:SP) (GIGNY) to Neutral
• Jernigan Capital (JCAP) Tops Q2 EPS by 5c
• KULR Technology Group (KULR) Misses Q2 EPS by 39c