By Adriano Marchese
Cargojet reported lower net income and revenue in the third quarter, missing analyst expectations for the period as high interest rates bite into consumer discretionary spending.
The Canadian air cargo company said Tuesday net income fell to 10.5 million Canadian dollars ($7.7 million), or C$0.61 a share, from C$83.4 million, or C$4.33 a share, in the comparable quarter a year ago.
Adjusted earnings were C$0.30 a share. According to FactSet, analysts were expecting C$0.72 a share.
Revenue fell to C$214 million from C$232.7 million. Analysts expected a decline in the quarter, but to C$217.6 million.
Chief Executive Ajay Virmani said that volumes for discretionary items are softening as higher interest rates are beginning to weigh on household disposable income.
Virmani also said that the company will work to identify cost-savings opportunity and sharpen its operating model.
Write to Adriano Marchese at adriano.marchese@wsj.com
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