Genesee & Wyoming shares hit year high on 3Q
NEW YORK (AP) — Genesee & Wyoming Inc. lost money in the third quarter because of an acquisition, the railroad operator said Monday, but its adjusted results topped Wall Street's expectations and shares hit a new year-high.
The company reported a loss of $19.6 million, or 47 cents per share, compared with a profit of $32.9 million, or 77 cents per share, a year ago.
Excluding the impact of its acquisition of RailAmerica, net income was 74 cents per share. Genesee & Wyoming in July agreed to buy fellow regional railroad operator RailAmerica for about $1.39 billion in cash. The deal closed Oct. 1.
Revenue rose 3 percent to $222.7 million.
Analysts expected a profit of 69 cents per share on revenue of $219.5 million, according to FactSet. Genesee said higher prices offset weakness in U.S. coal and Australian grain shipments.
The company also said it cut costs to offset continued weakness in coal and salt shipments in North America during the summer.
Shares of Genesee & Wyoming rose $2.70, or 3.8 percent, to $74.19 in midday trading. The stock earlier traded as high as $75.82, eclipsing a previous 12-month high of $73.95.