CSX Corp. (CSX) reported better-than-expected earnings in the recently ended third quarter and the stock was fluctuating in the extended hours of trading. On a per share basis, profit more than doubled to $1.05 versus $0.51 in the prior-year period, while earnings almost doubled to $894 million.
Revenue rose 14% to $3.13 billion, aided by broad-based volume growth, increases in fuel recovery, favorable mix, higher supplemental revenue and pricing gains.
Analysts had expected the company to post earnings of $0.94 per share and revenue of $3.05 billion. Shares of CSX were fluctuating between red and green and were trading up about 1% at 5:10PM ET.
Total expenses dropped 2% to $1.84 billion, as expenses associated with increased volume and higher fuel prices were more than offset by efficiency gains.
Looking ahead, the company expects revenue to grow 6% to 8% in 2018. The company plans to reposition Intermodal towards sustainable and profitable growth.
CSX’s peer Canadian Pacific (CP) is expected to announce its earnings on Thursday after the bell and the analysts view the company to post earnings of $3.16 per share. Another railroad operator Kansas City Southern (KSU) is expected to post EPS of $1.58 when it reports the quarterly results on Friday.
The Jacksonville, Florida-based company closed Tuesday’s trading session with a gain of 1.89% at $72.20. The railroad operator’s shares have gained 31% so far in this year and 36% in the past 12 months.