CSX Corporation (CSX - Free Report) reported fourth-quarter 2017 earnings (excluding $3.98 from non-recurring items) of 64 cents per share, beating the Zacks Consensus Estimate of 56 cents. The figure excludes the $3.6 billion net tax reform benefit from the Tax Cuts and Jobs Act of 2017 and a net restructuring charge of $10 million. Moreover, the bottom line climbed 30.6% year over year due to lower costs.
However, revenues of $2,863 million missed the Zacks Consensus Estimate of $2,882.2 million. Also, the top line declined 5.7% year over year to the tune of $178 million, mainly due to the impact of an extra fiscal week in 2016, resulting from CSX’s 52/53 fiscal reporting calendar in 2016. Overall, volumes contracted 2% year over year.
The revenue miss disappointed investors. Consequently, the stock slid 1% in after-hours trading on Jan 16.
Fourth-quarter operating income (on a reported basis) improved 12% year over year to $1,121 million. As the operating ratio (operating expenses as a percentage of revenues) reportedly improved to 60.9% from 67% in the prior-year quarter, operating expenses declined 14% from the year-ago quarter.
Adjusted operating income in the fourth quarter was $1,008 million. On an adjusted basis, the operating ratio for the reported quarter was 64.8%.
Segmental Performance
Merchandise revenues slipped 2% year over year to $1,743 million in the quarter. Also, merchandise volumes declined 5% year over year.
Coal revenues rose 4% year over year to $541 million in the quarter. While, coal volumes were flat year over year.
Intermodal revenues also improved 4% year over year to $471 million. On a year-over-year basis, volumes inched up 1%.
Other revenues grossed $108 million, down 4% year over year.
Liquidity
This Zacks Rank #3 (Hold) company exited the fourth quarter with cash and cash equivalents of $401 million compared with $603 million at the end of 2016. Long-term debt totaled $11,790 million compared with $10,962 million at 2016-end. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For the period ending Dec 31, 2017, net cash provided by operating activities was $3,472 million compared with $3,041 million in the year-ago period.
Top and Bottom-line Performance in 2017
For 2017, the company reported adjusted earnings per share of $2.30, surpassing the Zacks Consensus Estimate of $2.21. Revenues climbed 3% to $11, 408 million, in line with the consensus mark.
Upcoming Releases
Investors interested in the railroad space are keenly awaiting fourth-quarter earnings reports of key players like Canadian National Railway Company (CNI - Free Report) , Kansas City Southern and Norfolk Southern Corporation (NSC - Free Report) . Kansas City Southern is scheduled to report fourth-quarter results on Jan 19 while Canadian National and Norfolk Southern will report on Jan 23 and Jan 24, respectively.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
CSX Corporation (CSX - Free Report) reported fourth-quarter 2017 earnings (excluding $3.98 from non-recurring items) of 64 cents per share, beating the Zacks Consensus Estimate of 56 cents. The figure excludes the $3.6 billion net tax reform benefit from the Tax Cuts and Jobs Act of 2017 and a net restructuring charge of $10 million. Moreover, the bottom line climbed 30.6% year over year due to lower costs.
However, revenues of $2,863 million missed the Zacks Consensus Estimate of $2,882.2 million. Also, the top line declined 5.7% year over year to the tune of $178 million, mainly due to the impact of an extra fiscal week in 2016, resulting from CSX’s 52/53 fiscal reporting calendar in 2016. Overall, volumes contracted 2% year over year.
The revenue miss disappointed investors. Consequently, the stock slid 1% in after-hours trading on Jan 16.
Fourth-quarter operating income (on a reported basis) improved 12% year over year to $1,121 million. As the operating ratio (operating expenses as a percentage of revenues) reportedly improved to 60.9% from 67% in the prior-year quarter, operating expenses declined 14% from the year-ago quarter.
Adjusted operating income in the fourth quarter was $1,008 million. On an adjusted basis, the operating ratio for the reported quarter was 64.8%.
Segmental Performance
Merchandise revenues slipped 2% year over year to $1,743 million in the quarter. Also, merchandise volumes declined 5% year over year.
Coal revenues rose 4% year over year to $541 million in the quarter. While, coal volumes were flat year over year.
Intermodal revenues also improved 4% year over year to $471 million. On a year-over-year basis, volumes inched up 1%.
Other revenues grossed $108 million, down 4% year over year.
Liquidity
This Zacks Rank #3 (Hold) company exited the fourth quarter with cash and cash equivalents of $401 million compared with $603 million at the end of 2016. Long-term debt totaled $11,790 million compared with $10,962 million at 2016-end. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For the period ending Dec 31, 2017, net cash provided by operating activities was $3,472 million compared with $3,041 million in the year-ago period.
Top and Bottom-line Performance in 2017
For 2017, the company reported adjusted earnings per share of $2.30, surpassing the Zacks Consensus Estimate of $2.21. Revenues climbed 3% to $11, 408 million, in line with the consensus mark.
Upcoming Releases
Investors interested in the railroad space are keenly awaiting fourth-quarter earnings reports of key players like Canadian National Railway Company (CNI - Free Report) , Kansas City Southern and Norfolk Southern Corporation (NSC - Free Report) . Kansas City Southern is scheduled to report fourth-quarter results on Jan 19 while Canadian National and Norfolk Southern will report on Jan 23 and Jan 24, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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