Revenue grew 10% to $3.14 billion driven by increases in fuel recovery, broad-based volume growth, pricing gains, higher supplemental revenue, and favorable mix.
Expenses increased 9% year-over-year to $1.89 billion, or 2% when 2017 results are adjusted for the impacts of restructuring and tax reform benefits. CSX’s operating ratio set a company fourth-quarter record of 60.3% from 60.7% in the prior year or 65.1% on an adjusted basis.
Looking ahead into the full year 2019, the company expects low single-digit revenue growth and capital expenditures in the range of $1.6 billion to $1.7 billion. Operating ratio for 2019 is predicted to outperform 2020 target of 60%. Free cash flow is trending ahead of the 3-year forecast of $8.5 billion.
The company announced the Board has authorized $5 billion in share repurchases after the early completion of the existing $5 billion authorization.
CSX’s peer Canadian Pacific (CP) is expected to announce its earnings on January 23 after the bell and the analysts view the company to post earnings of $3.15 per share. Another railroad operator Kansas City Southern (KSU) is expected to post EPS of $1.56 when it reports the quarterly results on Friday.
Shares of CSX ended Wednesday’s regular session up 0.41% at $65.38 on the NYSE. The stock has risen over 12% in the past year while it has fallen over 9% in the past three months.
Also read: CSX Q4 2018 earnings call transcript