CSX rides to earnings beat despite diminished efficiency
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CSX Corp. (NASDAQ:CSX) shares marked a strong gain in Thursdayâs extended session after exceeding expectations in the third quarter.
The Florida-based railroad operator posted $0.52 in diluted earnings per share, a 21% increase from the prior year quarter, alongside $3.9B in revenue. Consensus EPS and revenue estimates stood at $0.50 and $3.75B, respectively. Management credited higher volumes, fuel surcharges, and an increase in storage and other revenues for the results.
The above-consensus results came despite a rise in the railroadâs operating ratio to 59.5%, above the analyst expectation of 58.2%.
âI am tremendously excited to work with all the railroaders who make this performance possible and to lead an organization that is fundamentally committed to operational excellence,â CEO Joe Hinrichs said. âCSX has great potential for profitable growth over the long-term, and my key objective is to help ensure that we realize this opportunity while building a robust organization that will help drive additional value for our customers, our employees, and our shareholders.â
According to a presentation accompanying the earnings print, the railroad is still targeting double-digit revenue and operating income growth for the full-year. Management also plans to continue to increase headcount through the remainder of the year to improve service.
CSX Corp. (CSX) stock rose 3.25% in after hours trading on Thursday.
Read more on why SeekingAlpha Leo Nelissen sees the stock as a buying opportunity.