CSX Corp. stock gains on earnings, efficiency beat
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CSX Corp. (NASDAQ:CSX) shares rose sharply in Thursdayâs extended session after the railroad operator topped Q1 earnings estimates.

The Florida-based railroad company notched GAAP EPS of $0.48, $0.05 above consensus expectations. Meanwhile, an 8.8% rise in revenue year over year to $3.71B came in $130M better than analysts had anticipated. The company credited âsolid volume growth in merchandise and coal, higher fuel surcharge, and pricing gainsâ as well as efficiency improvements for the results.

On the efficiency front, an operating ratio of 60.5% was 200 basis points better than the Street consensus expectation.

âCSX had an encouraging start to the year as the efforts of our dedicated railroaders resulted in strong earnings growth,â CEO Joe Hinrichs commented. âOur ONE CSX initiatives are driving positive engagement among our employees and customers, which is lifting our service performance and providing us with exciting opportunities to win business and move more freight while maintaining our fundamental commitment to safe operations.â

In a guidance update provided in an earnings presentation slide deck, the company projects âlow single digit revenue ton-mile growth for the full year, driven by merchandise and export coal [and] merchandise volume growth supported by service recovery, strength in automotive and minerals, and customer wins.â 

However, headwinds are expected to persist in the international intermodal business. Management stressed a focus on efficiency improvements in order to âcounter strong inflationary pressuresâ expected in 2023. Cap expenditures are expected to reach about $2.3B for the full year.
Shares of CSX (CSX) rode 2.73% higher shortly after the earnings announcement.