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CSX Corporation (CSX - Free Report) delivered better-than-expected results in the third quarter of 2018. The company’s earnings per share of $1.05 beat the Zacks Consensus Estimate of 94 cents. Moreover, the bottom line surged more than 100% year over year driven by lower costs and other tailwinds.
Further, revenues of $3,129 million surpassed the Zacks Consensus Estimate of $3,039.2 million and increased 14% year over year. Results were driven by a 4% rise in volumes, higher fuel recoveries and strong core pricing gains across all major markets.
Investors’ sentiment was positively impacted by the company’s earnings and revenues beat and year-over-year improvement. As a result, shares of the company gained in after-hours trading on Oct 16.
Third-quarter operating income improved 49% year over year to $1,293 million. As the operating ratio (operating expenses as a percentage of revenues) improved to 58.7% from 68.4% in the prior-year quarter, total expenses decreased 2% from the year-ago period. Increase in efficiencies due to implementation of the precision scheduled railroading system contributed to the decline in expenses.
Buoyed by the impressive results, the company raised full-year 2018 guidance for revenues. Revenues are projected to increase between 6% and 8% (previous guidance had predicted an increase in the mid-single digits).
Merchandise revenues climbed 12% year over year to $1,890 million in the quarter under review. Moreover, merchandise volumes increased 5% year over year.
Coal revenues expanded 14% year over year to $588 million in the reported quarter. Coal volumes also grew 7% year over year.
Intermodal revenues rose 12% year over year to $500 million. On a year-over-year basis, volumes inched up 3%.
Other revenues grossed $151 million, up 59% year over year.
Liquidity
CSX Corp, sporting a Zacks Rank #1 (Strong Buy), exited the third quarter with cash and cash equivalents of $663 million compared with $401 million at the end of 2017. Long-term debt totaled $13,754 million compared with $11,790 million at 2017-end. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the first nine months of the year, net cash provided by operating activities was $3,406 million compared with $2,861 million in the year-ago period.
Upcoming Releases
Investors interested in the Zacks Transportation sector are keenly awaiting third-quarter earnings reports from key players like Kansas City Southern , JetBlue Airways Corporation (JBLU - Free Report) and Allegiant Travel Company (ALGT - Free Report) in the coming days. While Kansas City Southern is scheduled to report on Oct 19, JetBlue and Allegiant are scheduled to release financial numbers on Oct 23 and Oct 24, respectively.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
CSX Corp (CSX) Q3 Earnings & Revenues Beat Estimates, Up Y/Y
CSX Corporation (CSX - Free Report) delivered better-than-expected results in the third quarter of 2018. The company’s earnings per share of $1.05 beat the Zacks Consensus Estimate of 94 cents. Moreover, the bottom line surged more than 100% year over year driven by lower costs and other tailwinds.
Further, revenues of $3,129 million surpassed the Zacks Consensus Estimate of $3,039.2 million and increased 14% year over year. Results were driven by a 4% rise in volumes, higher fuel recoveries and strong core pricing gains across all major markets.
Investors’ sentiment was positively impacted by the company’s earnings and revenues beat and year-over-year improvement. As a result, shares of the company gained in after-hours trading on Oct 16.
Third-quarter operating income improved 49% year over year to $1,293 million. As the operating ratio (operating expenses as a percentage of revenues) improved to 58.7% from 68.4% in the prior-year quarter, total expenses decreased 2% from the year-ago period. Increase in efficiencies due to implementation of the precision scheduled railroading system contributed to the decline in expenses.
Buoyed by the impressive results, the company raised full-year 2018 guidance for revenues. Revenues are projected to increase between 6% and 8% (previous guidance had predicted an increase in the mid-single digits).
CSX Corporation Price, Consensus and EPS Surprise
CSX Corporation Price, Consensus and EPS Surprise | CSX Corporation Quote
Segmental Performance
Merchandise revenues climbed 12% year over year to $1,890 million in the quarter under review. Moreover, merchandise volumes increased 5% year over year.
Coal revenues expanded 14% year over year to $588 million in the reported quarter. Coal volumes also grew 7% year over year.
Intermodal revenues rose 12% year over year to $500 million. On a year-over-year basis, volumes inched up 3%.
Other revenues grossed $151 million, up 59% year over year.
Liquidity
CSX Corp, sporting a Zacks Rank #1 (Strong Buy), exited the third quarter with cash and cash equivalents of $663 million compared with $401 million at the end of 2017. Long-term debt totaled $13,754 million compared with $11,790 million at 2017-end. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the first nine months of the year, net cash provided by operating activities was $3,406 million compared with $2,861 million in the year-ago period.
Upcoming Releases
Investors interested in the Zacks Transportation sector are keenly awaiting third-quarter earnings reports from key players like Kansas City Southern , JetBlue Airways Corporation (JBLU - Free Report) and Allegiant Travel Company (ALGT - Free Report) in the coming days. While Kansas City Southern is scheduled to report on Oct 19, JetBlue and Allegiant are scheduled to release financial numbers on Oct 23 and Oct 24, respectively.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>