Post Earnings Coverage as CSX Corp. Results Top Market Estimates

LONDON, UK / ACCESSWIRE / October 13, 2016 / Active Wall St. announces its post-earnings coverage on CSX Corp. (NASDAQ: CSX). The company released its fiscal 2016 third-quarter financial results after markets closed on October 12th, 2016. With macroeconomic and energy headwinds taking their toll on markets, CSX delivered results consistent with what analysts were expecting. Register with us now for your free membership at: http://www.activewallst.com/register/.

Today, AWS is promoting its earnings coverage on CSX. Get our free coverage by signing up to http://www.activewallst.com/registration-3/?symbol=CSX.

Earnings Reviewed

For the quarter ended on September 23rd, 2016, CSX reported that its earnings fell 10% to $455 million, or $0.48 per share, compared to $507 million, or $0.52 per share, a year earlier. The Jacksonville, Florida-based freight railroad operator reported that revenue for Q3 2016 declined 8% $2.71 billion, consistent with volume declines of 8% overall, including coal volume declines of 21%.

At the same time, expenses improved 7% in the quarter, primarily driven by $112 million of efficiency gains and $53 million of volume-related cost reductions. Analysts had projected earnings of $0.45 per share and revenue of $2.69 billion.

Segment Review

During Q3 2016, CSX’s overall volumes declined 8% to $1,574 thousand units, reflecting declines of 7% in chemicals to 173 thousand units, an 8% drop in agricultural and food products to 109 thousand units while coal volume tumbled 21 % to 207 thousand units and total Merchandise volume declined 5% to 686 thousand units from 720 thousand units in Q3 2015. For Q3 2016, the total merchandise segment generated revenue of $1.74 billion, down 4% on y-o-y basis, while coal generated revenue was $467 million, declining 20% compared to Q3 2015. The company’s intermodal segment reported a 6% revenue decline to $425 million.

Operating Metrics

As cost savings partially offset the impact of lower volume and changing business mix, operating income declined 10 % to $841 million in Q3 2016, while operating ratio increased 70 basis points year-over-year to 69.0 %.

Balance Sheet

CSX reported cash and cash equivalents balance of $603 million as of September 23rd, 2016, lower than cash and cash equivalents balance of $628 million as of December 25th, 2015. The company reported long-term debt of $9.89 billion as of September 23rd, 2016, compared to $10.52 billion as of December 25th, 2015.

Dividend

On October 5th, 2016, CSX’s Board of Directors an $0.18 per share quarterly dividend on the company’s common stock. The dividend is payable on December 15, 2016, to shareholders of record at the close of business on November 30, 2016.

Stock Performance

On Wednesday, the stock closed the trading session at $30.21, slightly falling 0.85% from its previous closing price of $30.47. A total volume of 12.31 million shares have exchanged hands, which was higher than the 3-month average volume of 6.56 million shares. CSX Corp.’s stock price advanced 5.67% in the last month, 4.66% in the past three months, and 17.13% in the previous six months. Furthermore, on a year to date basis, the stock gained 18.86%. The stock is trading at a PE ratio of 16.51 and has a dividend yield of 2.38%.

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