Categories AlphaGraphs, Consumer, Earnings

CSX Corp Q4 profit dips 80% but beats estimates

CSX Corp (CSX) reported an 80% dip in earnings for the fourth quarter of 2018 as the previous year quarter included the impacts of restructuring and tax reform benefits. However, the results exceeded analysts’ expectations. The stock declined over 2% in the after-market session following weak outlook for 2019.

Net income plunged 80% to $843 million and earnings dipped 78% to $1.01 per share. The fourth quarter 2017 earnings included a tax reform benefit resulting from tax act and restructuring charge. Adjusted earnings soared 58% to $1.01 per share.

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.

CSX Corp fourth quarter 2018 earnings infographics

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

We’re on Apple News! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top