Canadian Pacific Railway shares fell more than 2 percent Tuesday as the company announced it expects lower-than-expected earnings and revenues for the second quarter in 2016.

The rail network anticipated a 12 percent revenue slump from the same quarter a year ago due to a decrease in bulk commodities like grain and potash coupled with "devastating wildfires in northern Alberta and a strengthening Canadian dollar," it said in a release.

The firm also said it sees adjusted second-quarter earnings per share of CA$2, below a Reuters consensus of CA$2.46. Reuters also expected revenues to fall about 5 percent.

The Alberta-based company called these factors "transitory," and expects taking actions during the first half of 2016 which would edge it back towards its full-year guidance.

"CP will continue to focus on controlling costs in a difficult environment. While we acknowledge the environment remains challenging, additional cost reduction opportunities and the potential for stronger volumes in the back half of the year still lead us to believe that achieving double-digit EPS growth in 2016 is a possibility," said E. Hunter Harrison, CEO of Canadian Pacific in a statement.

Canadian Pacific's U.S.-listed shares closed at $124.34 per share on Tuesday. It has declined more than 2 percent this year.

Canadian Pacific year to date