Genesee & Wyoming Earnings: Here’s Why Investors are Buying Shares Now

Genesee & Wyoming Inc. (NYSE:GWR) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 4.84%.

Genesee & Wyoming Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 67.65% to $1.14 in the quarter versus EPS of $0.68 in the year-earlier quarter.

Revenue: Rose 84.3% to $400.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Genesee & Wyoming Inc. reported adjusted EPS income of $1.14 per share. By that measure, the company beat the mean analyst estimate of $1.11. It missed the average revenue estimate of $404.39 million.

Quoting Management: Jack Hellmann, President and CEO of G&W commented, “The second quarter of 2013 was the second reporting period in which G&W’s consolidated results included the former RailAmerica railroads. We are pleased to report continued strength in our financial results, with adjusted earnings per share up more than 50%. Our Combined Company same railroad adjusted revenues increased 10% in the second quarter of 2013, led by iron ore in Australia, petroleum products in North America and improving steam coal shipments in the United States. In addition, each of our eleven operating regions effectively managed its costs. As a result, in North America, our adjusted operating ratio improved 2.1 percentage points to 74% and in Australia our adjusted operating ratio improved 4.8 percentage points to 70%.”

Key Stats (on next page)…

Revenue increased 6.79% from $375.21 million in the previous quarter. EPS increased 31.03% from $0.87 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.31 and has not changed. For the current year, the average estimate is a profit of $4.63, which is the same with that ninety days ago.

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