Genesee & Wyoming Earnings: Everything You Must Know Now

Genesee & Wyoming Inc. (NYSE:GWR) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Genesee & Wyoming Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 67.31% to $0.87 in the quarter versus EPS of $0.52 in the year-earlier quarter.

Revenue: Rose 80.87% to $375.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Genesee & Wyoming Inc. reported adjusted EPS income of $0.87 per share. By that measure, the company missed the mean analyst estimate of $0.89. It missed the average revenue estimate of $384.17 million.

Quoting Management: Jack Hellmann, President and CEO of G&W, commented, “The first quarter of 2013 was the first full reporting period in which G&W’s consolidated results included the former RailAmerica railroads. We moved quickly to integrate the new operations and are pleased to report financial results in-line with our acquisition plan. Despite revenue weakness from Canadian winter wheat exports and certain North American steel shipments, we managed our operating costs well and reported an adjusted operating ratio of 76.7%, 230 basis points better than last year. Normalizing for several items such as the benefit of the U.S. short line tax credit, RailAmerica integration costs, as well as the impact of last year’s Edith River Bridge washout in Australia, G&W’s adjusted earnings per share increased nearly 40% in the first quarter of 2013.”

Key Stats (on next page)…

Revenue increased 65.05% from $227.32 million in the previous quarter. EPS increased 10.13% from $0.79 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.15 to a profit $1.13. For the current year, the average estimate has moved up from a profit of $4.51 to a profit of $4.65 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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