10/20/2015 05:00 EDT | Updated 10/20/2016 01:12 EDT

Canadian Pacific Q3 revenue, adjusted earnings beat analyst estimates

CALGARY — Canadian Pacific Railway Ltd (TSX:CP) had $323 million of net income and an adjusted profit of $427 million in the third quarter.

The adjusted profit amounted to $2.69 per CP share, which was up 16 per cent from the same time last year and two cents above an estimate compiled by Thomson Reuters.

Revenue was also above the estimate, rising to $1.709 billion in the three months ended Sept. 30, up two per cent from the third quarter of 2014.

Analysts had estimated $2.67 per share of adjusted earnings and $1.686 billion of revenue.

The Calgary-based company — which has Canada's second-largest railway after Canadian National (TSX:CNR) — said it was able to reduce how much of its revenue was spent on operating costs.

However, the company's net income was down — mainly because of the impact of foreign exchange fluctuations on the value of the debt it owes. Net income fell to $2.69 per share from $400 million or $2.31 per share.