(The Associated Press circulated the following on April 23.)
NEW YORK — Shares of railroads finished lower Wednesday, as investors reacted to Norfolk Southern Corp.’s first-quarter earnings that missed analysts’ expectations and the downgrade of Canadian Pacific Railway Ltd.
After the bell Tuesday, Norfolk Southern said it earned 76 cents in the first-quarter, compared with analysts’ consensus estimate of 78 cents.
Lehman Brothers analyst Gary Chase said while earnings fell below his estimate, he applauded the railroad’s 11 percent year-over-year revenue growth. He also noted Norfolk Southern is still benefiting from strong pricing, which Chase expects will boost earnings throughout the year.
Also Wednesday, Longbow Research analyst Lee Klaskow cut shares of Canadian Pacific to “Neutral” from “Buy,” saying shares have limited growth potential this year.
Canadian Pacific Railway Ltd. said Tuesday its first-quarter earnings sank 29 percent and missed Wall Street’s expectations. The railroad operator also cut its guidance for the year.
Norfolk Southern shares fell $2.40, or 3.9 percent, to close Wednesday at $58.74, while Canadian Pacific lost 89 cents to $66.70 .
Elsewhere in the sector, Union Pacific Corp. slipped $1.68 to $135.14 while Burlington Northern Santa Fe Corp. fell $1.47 to $97.56.
CSX Corp. gave up $1.30, or 2.1 percent, to close at $59.36, and Kansas City Southern fell 28 cents to $41.52.
Canadian National Railway Co. slipped 36 cents to $50.92.