CSX Earnings: Profit Rises for Third Straight Quarter

Falling revenue did not prevent S&P 500 (NYSE:SPY) component CSX Corporation (NYSE:CSX) from reporting a profit boost in the second quarter. CSX provides rail-based transportation services including traditional rail service and the transport of intermodal containers and trailers.

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CSX Corporation Earnings Cheat Sheet

Results: Net income for the transportation-rail rose to $512 million (49 cents per share) vs. $506 million (46 cents per share) in the same quarter a year earlier. This marks a rise of 1.2% from the year-earlier quarter.

Revenue: Fell 0.2% to $3.01 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: CSX Corporation beat the mean analyst estimate of 47 cents per share. Analysts were expecting revenue of $3.05 billion.

Quoting Management: “CSX delivered its 10th straight quarter of year-over-year earnings growth despite significant headwinds in its utility coal business,” said Michael J. Ward, chairman, president and chief executive officer. “The company continues to perform well across a wide range of economic and market conditions.”

Key Stats:

The company has now seen its net income rise for three quarters in a row. In the first quarter, net income rose 13.7% and in the fourth quarter of the last fiscal year, the figure rose 6.3%.

A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 13.4%.

The company has beaten estiamtes for two quarters in a row. In the first quarter, it topped expectations with net income of 43 cents versus a mean estimate of net income of 38 cents per share.

Looking Forward: The average estimate for the third quarter remains unchanged at 47 cents a share. Over the past three months, the average estimate for the fiscal year has climbed from $1.81 per to share to $1.84.

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

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