NEW YORK (TheStreet) -- Shares of Canadian Pacific Railway  (CP) closed lower by 2.42% to $124.34 in Tuesday's trading session after announcing that second-quarter earnings will likely fall short of analysts' estimates. 

Canada's second-largest railroad expects that revenue for the current period will decline 12%, resulting in adjusted per-share earnings of roughly $1.56 and an operating ratio of about 62%. 

Analysts surveyed by Thomson Reuters are looking for earnings of $1.87 per share. 

The lowered outlook reflects a "challenging volume environment and raises questions on CP's ability to achieve full-year guidance," Benoit Poirier, a Desjardins Capital Markets analyst, said in a note cited by Bloomberg. Investors will probably "remain skeptical about CP's ability to achieve its 2016 guidance in light of the lack of visibility on a volume recovery" in the second half of the year, he added.

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.

Canadian Pacific's strengths such as its increase in net income, notable return on equity, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

You can view the full analysis from the report here: CP

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.