Genesee & Wyoming Inc., which owns and operates short line and regional railroads, reported better-than-expected quarterly earnings, helped by a 70 percent rise in freight revenue.

The Greenwich, Connecticut-based company also said it agreed to buy the Arizona Eastern Railway from Iowa Pacific Holdings LLC of Chicago for $90.1 million in cash.

April-June net income was $31.1 million, or 73 cents per share, compared with $20.6 million, or 50 cents per share, a year ago.

Revenue of the company, that operates in the United States, Canada, Australia, the Netherlands and Belgium, rose 32 percent to $209.6 million.

Analysts, on average, expected earnings of 70 cents per share, on revenue of $204.8 million, according to Thomson Reuters I/B/E/S.

The company's freight segment revenue rose $146.8 million.

Genesee & Wyoming shares closed at $55.05 on Monday on the New York Stock Exchange. (Reuters)