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Spiraling costs offset the benefits of rising shipments, leading Canadian Pacific Railway Ltd. off-track on its earnings expectations.

Excluding certain items the company earned $2.70 per share, missing the average analyst estimate of $2.76. Total revenue rose nearly 4 per cent to $1.66 billion.

The company’s total operating expenses rose 12.3 percent to $1.12 billion in the quarter ended March 31. That caused its operating ratio — operating costs as a percentage of revenue — to rise to 67.5 percent for the quarter from 62.4 percent a year earlier. A lower ratio indicates higher efficiency.

CP’s net income fell to $348 million or $2.41 per share, from $431 million, or $2.93 per share, a year earlier.

CP said that while revenue from grain — among the biggest contributors to overall results — slipped 9 percent, potash revenue and revenue from energy, chemicals and plastics both increased over 10 percent.

The company’s news release said it had “positive momentum heading into [the] second quarter,” a sure sign that the first quarter stunk. Shares fell slightly in after-market trading on the New York Stock Exchange Wednesday.

Kinder Morgan Inc. said Wednesday after the market closed that that its Trans Mountain oil pipeline expansion project was facing “unquantifiable risk” due to the British Columbia government’s continued opposition. The comment was part of a report of a 5.1 percent drop in first-quarter earnings.

Texas-based Kinder Morgan separately reported net income available to common stockholders of $485 million (U.S.), or 22 cents (U.S.) per share, in the quarter to the end of March, compared with $401 million (U.S.), or 18 cents (U.S.) per share, a year earlier. Analysts had expected, on average, EPS of 21 cents (U.S.). Shares were up just over 1 per cent in after-market trading Wednesday.

Kinder Morgan Canada Ltd., which was spun off from parent Kinder Morgan in May last year, reported a net income of $44.4 million for the first quarter ended March 31, down from $46.8 million for the same period last year.

Also Wednesday, Alcoa rewarded investors who’d been bidding up steel and other metals stocks in an environment of rising prices. The company boosted guidance and reported 77 cents (U.S.) of first-quarter earnings per share, topping analysts’ average estimate of 70 cents (U.S.), according to Thomson Reuters I/B/E/S. Revenue of $3.1 billion (U.S.) was just a smidge above the average estimate of $3.08 billion (U.S.).

The company’s new forecast for “adjusted EBITDA,” or earnings before interest, taxes, depreciation and amortization, is a range of $3.5 billion (U.S.) to $3.7 billion (U.S.).

Shares were up more than 4 per cent in after-market trading. The shares were up 4.9 percent on the day and up nearly 9 percent for the week so far. It rose 14.4 percent last week, when U.S. sanctions on Rusal, the world’s second-biggest aluminum producer, sharply drove up aluminum prices.

Steel shares have risen this week as well, although they have been volatile since the tariffs’ announcement, given news over which countries might be exempted. Steelmaker Nucor Corp is expected post higher first-quarter revenue when it reports Thursday.

Wednesday afternoon, American Express continued what’s largely been a winning streak for big U.S. financials this earnings season, rising after-market when it said it sees its 2018 earnings coming in at the high end of analysts’ expectations for $6.90 (U.S.) to $7.30 (U.S.) per share. Shares were up more than 3 per cent at 4:30 eastern time.

The credit-card company topped Wall Street forecasts with earnings of $1.86 (U.S.) per share, versus expected earnings of $1.71 (U.S.) per share, according to Thomson Reuters I/B/E/S. Total revenue, net of interest expense, climbed 12 percent to $9.72 billion (U.S.), topping analysts’ expectations of $9.46 billion (U.S.).

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose in January and February.

While the biggest of the U.S. financials have already reported, there’s more than just small fish left. Thursday morning’s calendar includes Blackstone Group LP, the world’s largest manager of alternative assets. The first three months of 2018 was a volatile period for markets, which could weigh on valuations at its private equity business. Analysts expect EPS of 45 cents (U.S.), on average, on revenue of just under $1.3 billion (U.S.). Analysts have been chopping earnings and revenue estimates in recent weeks, with the average cut in revenue estimates a whopping 26.5 per cent, Eikon says.

Bank of New York Mellon Corp, the world’s largest custodian bank, is expected to report a first-quarter profit helped by lower tax rates like most U.S. banks that have benefited from new U.S. tax laws. Expenses are expected to rise marginally. Analysts expect EPS of 96 cents (U.S.), on average, on revenue of just over $4 billion (U.S.).

Regional bank BB&T Corp., the seventh-largest U.S. commercial bank by assets, also reports, with analysts expecting EPS of 92 cents (U.S.), on average, up from 74 cents (U.S.) in the prior-year period.

Philip Morris International Inc., one of the largest stocks hardly anyone ever speaks of, reports Thursday morning. The global cigarette maker is expected to post EPS of 90 cents (U.S.) on revenue of just over $7 billion (U.S.). The company has missed expectations five quarters in a row going into its first-quarter report Thursday.

The instrument-and-industrials company Danaher Corp. also reports, with analysts expecting EPS of 94 cents (U.S.) on revenue of just over $4.5 billion (U.S.).

Thursday’s Canadian markets may see some anticipatory trading of Rogers Communications Inc., which is set to report once the session closes. Rogers is expected to report bigger first-quarter profits helped by the growth of its wireless business. Investors will look at how the company will lower expenses and increase margins.

With files from Reuters

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