CSX Corporation Earnings: Profit Rises for Third Straight Quarter

S&P 500 (NYSE:SPY) component CSX Corporation (NYSE:CSX) reported net income above Wall Street’s expectations for the first quarter. CSX provides rail-based transportation services including traditional rail service and the transport of intermodal containers and trailers.

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CSX Earnings Cheat Sheet for the First Quarter

Results: Net income for the transportation-rail rose to $449 million (43 cents per share) vs. $395 million (35 cents per share) in the same quarter a year earlier. This marks a rise of 13.7% from the year-earlier quarter.

Revenue: Rose 5.6% to $2.97 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: CSX Corporation beat the mean analyst estimate of 38 cents per share. Analysts were expecting revenue of $2.92 billion.

Quoting Management: “CSX is off to a fast start in a year that will be dynamic and challenging,” said Michael J. Ward, chairman, president and chief executive officer. “A significant majority of our transportation markets are performing very well and our operations are delivering excellent results.”

Key Stats:

The company has now seen its net income rise for three quarters in a row. In the fourth quarter of the last fiscal year, net income rose 6.3% and in the third quarter of the last fiscal year, the figure rose 12.1%.

Revenue has risen for the last four quarters. Revenue increased 4.8% to $2.95 billion in the fourth quarter of the last fiscal year. The figure rose 11.1% in the third quarter of the last fiscal year from the year earlier and climbed 13.4% in the second quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the fourth quarter of the last fiscal year, it missed the mark by one cent, and in the third quarter of the last fiscal year, it came in under estimates by one cent.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is 48 cents per share, down from 50 cents ninety days ago. The average estimate for the fiscal year is $1.81 per share, down from $1.93 ninety days ago.

Competitors to Watch: Norfolk Southern Corp., Union Pacific Corporation, Kansas City Southern, Genesee & Wyoming Inc., Providence & Worcester Railroad Co., Burlington Northern Santa Fe, LLC, Canadian National Railway, Canadian Pacific Railway Ltd., and Pioneer Railcorp.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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