Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
$CSX General Update: Louisville & Indiana Railroad & CSX announced completion of an agreement that grants CSX a permanent easement to operate over L&I's 106-mile rail corridor between Indianapolis & Louisville and $100MM infrastructure investment to improve regional freight flows and global connectivity.
As $CSX posted 3Q17 results, it reaffirmed FY17 adjusted expectations with operating ratio around the high end of mid-60s and EPS growth to be 20–25% off the FY16 reported base of $1.81. Free cash flow before dividends is seen to be around $1.5Bil in the full year.
As $CSX posted 3Q17 results, it announced that the overall volume outlook in 4Q17 is neutral. For Intermodal and Export Coal, the guidance is favorable while it is neutral for Agriculture and Food, and Metals and Equipment in the coming quarter.
Even as nine empty rail cars derailed from a $CSX train on Oct 14 while traveling through Jacksonville, the railroad company posted 3Q17 results with net profit rising 1% to $459MM or $0.51 per diluted share. Net revenue inched 1% up to $2.74Bil.
$CSX sees significant sequential improvement in productivity in the second half of 2017. The main focus of the company in the remainder of the year would be to ensure reliability in train transit times, while taking initiatives to minimize cost and improve pricing.
Railroad company $CSX said train operations will increase sequentially in the coming quarters. The company expects to transport 30MM tonnes of commodities in the remainder of the year. The positive consumer sentiment indicates further growth in operations in 3Q17. Meanwhile, automobile shipments will be impacted by softening production.
$CSX continues to expect its EPS to grow around 25%, off the 2016-reported base of $1.81, in fiscal 2017. Operating ratio is forecast to be in the mid-60s. The company estimates its free cash flow before dividends to be around $1.5Bil during the year. In 2Q17, the BoD authorized an additional $500MM for the current share repurchase program.
Railroad company $CSX reported a 2Q17 profit of $510MM or $0.55 per share, higher than $445MM or $0.47 per share recorded last year. Non-GAAP income, excluding restructuring charges, was $0.64 per share. Revenues advanced 8% YoY in 2Q17. The growth was driven mainly by coal-related gains, better pricing and volume, and increased fuel recovery.