Canadian Pacific Railway Limited (TSE:CP) showed excellent results in the June quarter of the year this morning when the company released its second quarter numbers. The company showed earnings per share of $1.43 Canadian on revenue of $1.5 billion Canadian. On Tuesday’s market, shares in Canadian Pacific Railway Limited (TSE:CP) closed at $126.64 Canadian.

canadian pacific railway

In the run up to the announcement of these results, analysts studying the company were looking for earnings of $1.50 Canadian per share on revenues totaling $1.5 billion Canadian. In the same three months of last year, the company earned just 90 cents Canadian per share on revenue of $1.4 billion. The company’s operating ratio, one of the most important for analysts following the company, came in at 71.9 percent, the firm’s best ever result on that metric.

Canadian Pacific miss

This morning’s results denote an incredible turnaround from the way the company was performing in the same period last year. Canadian Pacific Railway Limited (TSE:CP) has had an incredible year, yet this earnings report is considered a miss by analysts. With Bill Ackman in charge of the company’s turn around, investors were expecting big returns from CP. Today’s numbers don’t quite meet the standard.

So far in 2013, shares in Canadian Pacific Railway Limited (TSE:CP) have increased in value by more than 24 percent. The company’s fortunes really are looking up, but gains this year have been weighed down by a very high valuation.Canadian Pacific Railway Limited (TSE:CP) currently trades at just over 40 times 2012 earnings.

Canadian Pacific Railway Limited (TSE:CP) guidance for 2013 was not changed in this earnings report. The company expects to keep its operating ratio at its current level or lower for the rest of the year while growing EPS by at least 40 percent over the number the company recorded in 2013. The company also said it expected to record full year revenue growth in the high single digits.