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

Should investors worry about Micron’s (MU) weak Q4 results and guidance?

The semiconductor industry is a rapidly growing business segment that currently thrives on the digital transformation wave. The demand for memory chips and other semiconductor products increased over the years,

What has Bed Bath & Beyond (BBBY) outlined for this fiscal year?

Shares of Bed Bath & Beyond (NASDAQ: BBBY) were up on Friday, a day after the company delivered disappointing results for the second quarter of 2022. The company reported a

NKE Earnings: Highlights of Nike’s Q1 2023 results

Nike, Inc. (NYSE: NKE) has reported a decrease in net profit for the first quarter of 2023, despite a modest increase in revenues. The company's stock suffered a big loss

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