NEW YORK (TheStreet) -- Shares of Canadian National Railway Co. (CNI) are up 2.04% to $69.37 after the Montreal-based transportation firm reported a significant increase in profit and bolstered its 2014 financial outlook, reflecting a quick recovery from last quarter's tough winter weather, Reuters reports.
CN said net earnings for the quarter ended June 30 rose to C$847-million ($789.6-million), or C$1.03 per share, from C$717-million, or 84 Canadian cents per share, in the same period a year ago.
Excluding one-time gains, adjusted earnings per share were C$1.03, compared with 83 Canadian cents in the year-ago quarter.
Revenue increased 17% to C$3.11-billion, as carload volumes grew 11%. Analysts, on average, were expecting earnings of C$1.00 a share and revenue of C$3.10-billion, according to Thomson Reuters I/B/E/S.
CN said it now expects to deliver "solid double-digit EPS growth" in 2014 over 2013 earnings per share of C$3.06, versus an earlier forecast of "aiming for double-digit" growth.
TheStreet Ratings team rates CANADIAN NATIONAL RAILWAY CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate CANADIAN NATIONAL RAILWAY CO (CNI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, good cash flow from operations, growth in earnings per share and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."