CSX Corporation's ( CSX Quick Quote CSX - Free Report) third-quarter 2020 earnings of 96 cents per share surpassed the Zacks Consensus Estimate of 93 cents. However, the bottom line declined 11.1% year over year due to a drop in revenues. Meanwhile, total revenues of $2,648 million lagged the Zacks Consensus Estimate of $2,704.6 million and also declined 11.1% year over year owing to coal and merchandise volume declines, thanks to coronavirus. CSX’s board approved a new share buyback program, worth $5 billion. This is in addition to approximately $1.1 billion already remaining under the existing share repurchase program. This shareholder friendly initiative drove shares of the company up more than 3% in after-market trading on Oct 21. Third-quarter operating income fell 11% to $1,141 million. Operating ratio (operating expenses as a percentage of revenues) deteriorated to 56.9% from 56.8% in the prior-year quarter as a result of low revenues. Notably, lower the value of the metric, the better. Total expenses declined 11% year over year in the reported quarter. Costs reduced primarily due to increased efficiency. Segmental Performance
Merchandise revenues plummeted 7% year over year to $1,777 million in the quarter under review. Merchandise volumes also slipped 5%.
Coal revenues plunged 36% year over year to $330 million in the reported quarter. Coal volumes contracted 27% due to lower domestic and export coal volumes. Intermodal revenues were flat year over year at $445 million. Volumes increased 7% with both domestic and international shipments increasing as a result of tightening truck capacity among other factors. Other revenues dropped 12% to $96 million in the reported quarter. Liquidity & Share Buyback
This Zacks Rank #3 (Hold) company exited the third quarter with cash and cash equivalents of $2,898 million compared with $958 million at the end of December 2019. Long-term debt totaled $16,121 million compared with $15,993 million at 2019-end. As of Sep 30, 2020, net cash provided by operating activities was $3,128 million, compared with $3,737 million in the year-earlier period. You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here As of Sep 30, 2020, CSX repurchased 10 million shares for $664 million. Sectorial Snapshot
Let’s take a look at some of the other recently released earnings reports from companies within the Zacks
Transportation sector. Kansas City Southern ( KSU Quick Quote KSU - Free Report) , carrying a Zacks Rank #3, reported third-quarter 2020 earnings (excluding 5 cents from non-recurring items) of $1.96 per share, beating the Zacks Consensus Estimate of $1.88. Meanwhile, quarterly revenues of $659.6 million lagged the Zacks Consensus Estimate of $662.4 million. JB Hunt Transport Services Inc ( JBHT Quick Quote JBHT - Free Report) , carrying a Zacks Rank of 3, reported third-quarter 2020 earnings of $1.18 per share, falling short of the Zacks Consensus Estimate of $1.26. Total operating revenues of $2,472.5 million beat the consensus mark of $2,345.2 million. United Airlines Holdings Inc ( UAL Quick Quote UAL - Free Report) , carrying a Zacks Rank of 3, incurred a loss (excluding $1.83 from non-recurring items) of $8.16 per share in the third quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of $7.63. Moreover, operating revenues of $2,489 million lagged the Zacks Consensus Estimate of $2,570.1 million. Breakout Biotech Stocks with Triple-Digit Profit Potential
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