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CSX Corp???s Earnings and Revenues Surpass Estimates in Q2
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CSX Corporation (CSX - Free Report) reported second-quarter 2017 earnings (excluding restructuring charge worth $122 million) of 64 cents per share, which beat the Zacks Consensus Estimate of 59 cents. Also, quarterly earnings were 36.17% above the year-ago figure. Results were aided by higher revenues.
Revenues of $2,933 million outpaced the Zacks Consensus Estimate of $2,849.6 million, reflecting an improvement of 8.47% year over year owing to a 2% increase in overall volumes. The company saw growth across nearly all markets, which can be attributed to coal-related gains, strength in core pricing and volume across markets, and increased fuel recovery.
Also, second-quarter operating income (on a reported basis) improved 14% year over year to $958 million. While operating ratio (operating expenses as a percentage of revenues) contracted 220 basis points to 67.4% on a reported basis, operating expenses rose 6% year over year to $1,975 million, mainly due to restructuring charges.
Adjusted operating income in the first quarter was $1,080 million. On an adjusted basis, the operating ratio for the reported quarter was 63.2%.
CSX continues to expect full-year operating ratio in the mid-60s and earnings per share growth of around 25% off the 2016 reported base of $1.81.
Segmental Performance
Merchandise revenues inched up 1% year over year to $1,798 million in the quarter.
Coal revenues surged 27% year over year to $530 million due to 7% expansion in volumes.
Intermodal revenues improved 7% year over year to $448 million. On a year-over-year basis, volumes increased 3%.
Other revenues grossed $157 million, up 62% year over year.
This company exited the second quarter with cash and cash equivalents of $620 million compared with $603 million at the end of 2016. Long-term debt totaled $11,806 million for this Zacks Rank #2 (Buy) company, compared with $10,962 million a year ago. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For the period ending Jun 30, 2017, net cash provided by operating activities was$1,566 million compared with $1,592 million in the year-ago period. During the second quarter, the company’s board authorized an additional $500 million for the current share repurchase program (now worth $1.5 billion). The company bought back stock worth nearly $500 million in the reported quarter, under the program.
Upcoming Releases
Investors interested in the railroad space are keenly waiting for second-quarter earnings reports from key players like Canadian National Railway Company (CNI - Free Report) , Kansas City Southern and Norfolk Southern Corporation (NSC - Free Report) . While Canadian National is scheduled to report its second-quarter results on Jul 25, Kansas City Southern and Norfolk Southern will report on Jul 21 and Jul 26, respectively.
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CSX Corp???s Earnings and Revenues Surpass Estimates in Q2
CSX Corporation (CSX - Free Report) reported second-quarter 2017 earnings (excluding restructuring charge worth $122 million) of 64 cents per share, which beat the Zacks Consensus Estimate of 59 cents. Also, quarterly earnings were 36.17% above the year-ago figure. Results were aided by higher revenues.
Revenues of $2,933 million outpaced the Zacks Consensus Estimate of $2,849.6 million, reflecting an improvement of 8.47% year over year owing to a 2% increase in overall volumes. The company saw growth across nearly all markets, which can be attributed to coal-related gains, strength in core pricing and volume across markets, and increased fuel recovery.
Also, second-quarter operating income (on a reported basis) improved 14% year over year to $958 million. While operating ratio (operating expenses as a percentage of revenues) contracted 220 basis points to 67.4% on a reported basis, operating expenses rose 6% year over year to $1,975 million, mainly due to restructuring charges.
Adjusted operating income in the first quarter was $1,080 million. On an adjusted basis, the operating ratio for the reported quarter was 63.2%.
CSX continues to expect full-year operating ratio in the mid-60s and earnings per share growth of around 25% off the 2016 reported base of $1.81.
Segmental Performance
Merchandise revenues inched up 1% year over year to $1,798 million in the quarter.
Coal revenues surged 27% year over year to $530 million due to 7% expansion in volumes.
Intermodal revenues improved 7% year over year to $448 million. On a year-over-year basis, volumes increased 3%.
Other revenues grossed $157 million, up 62% year over year.
CSX Corporation Price, Consensus and EPS Surprise
CSX Corporation Price, Consensus and EPS Surprise | CSX Corporation Quote
Liquidity & Buyback
This company exited the second quarter with cash and cash equivalents of $620 million compared with $603 million at the end of 2016. Long-term debt totaled $11,806 million for this Zacks Rank #2 (Buy) company, compared with $10,962 million a year ago. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For the period ending Jun 30, 2017, net cash provided by operating activities was$1,566 million compared with $1,592 million in the year-ago period. During the second quarter, the company’s board authorized an additional $500 million for the current share repurchase program (now worth $1.5 billion). The company bought back stock worth nearly $500 million in the reported quarter, under the program.
Upcoming Releases
Investors interested in the railroad space are keenly waiting for second-quarter earnings reports from key players like Canadian National Railway Company (CNI - Free Report) , Kansas City Southern and Norfolk Southern Corporation (NSC - Free Report) . While Canadian National is scheduled to report its second-quarter results on Jul 25, Kansas City Southern and Norfolk Southern will report on Jul 21 and Jul 26, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>