Canadian Pacific Railway Ltd (NYSE:CP) stock rose 0.46% (As on October 27, 11:55:53 AM UTC-4, Source: Google Finance) after the company reported third quarter earnings that beat analysts’ forecasts and revenue that topped expectations. The company’s earnings came in at C$891 million for the third quarter of FY 22, compared with C$472 million, in last year’s third quarter. Federal Railroad Administration (“FRA”) reportable train accident frequency decreased 76 percent to a record-low 0.37 from 1.54 in Q3 2021. FRA-reportable personal injury frequency declined 12 percent to 0.86 from 0.98 in Q3 2021. Adjusted OR improved by 70 basis points to 58.7 percent from 59.4 percent last year. CP is continuing to progress towards creating the first single-line rail network linking the U.S., Mexico and Canada by combining with KCS, subject to U.S. Surface Transportation Board approval.

CP in the third quarter of FY 22 has reported the adjusted earnings per share of $1.01, beating the analysts’ estimates for the adjusted earnings per share of $1. The company had reported the adjusted revenue growth of 19 percent to $2.31 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $2.27 billion.

The company has declared a quarterly dividend of $0.19 per share on the outstanding Common Shares. The dividend is payable on Jan. 30, 2023 to holders of record at the close of business on Dec. 30, 2022.

Additionally, the company has received the required regulatory clearance from the Committee on Foreign Investment in the United States (“CFIUS”) for the proposed combination of CP and Kansas City Southern (“KCS”).  CP completed its acquisition of KCS on Dec. 14, 2021. Immediately upon the closing of the acquisition, the shares of KCS were placed into a voting trust which ensures KCS will operate independently of CP while the U.S. Surface Transportation Board (“STB”) completes its regulatory review of the companies’ joint railroad control application to create Canadian Pacific Kansas City (“CPKC”), the only single-line railroad linking the United States, Mexico and Canada. The STB review of CP’s proposed control of KCS is expected to be completed in early 2023.

On the other hand, the company has said it would appeal a decision issued by the Court of King’s Bench in the case of Remington Development Corporation v Canadian Pacific Railway Company and His Majesty the King in Right of Alberta, as represented by the Minister of Infrastructure and the Minister of Transportation.