CSX Corporation (NASDAQ: CSX) stock rose 1.89% on October 16^th, 2018 and enhanced over 0.6% in the pre-market session on October 17^th, 2018 after the company posted better than expected results for the third quarter 2018. The company has undertaken few initiatives in the third quarter. First, the company made changes to the organizational structure in the operating department, which pushed more real-time decision making to the field. Second, CSX has announced new major initiatives at the Northwest Ohio intermodal terminal. This facility functioned as a sorting facility under the previous hub-and-spoke strategy. The company will now leverage this asset and its important strategic location as a traditional intermodal terminal to drive new revenue opportunities. As part of the company’s plan, CSX is working with Northpoint Development to establish a logistics park adjacent to the terminal. This logistics center will require no capital from CSX. Further, the company has also announced a new haulage agreement with BNSF that enhances western access to the facility and the company is looking to work on expanding access from East Coast ports

CSX in the third quarter of FY 18 has reported the adjusted earnings per share of $1.05, beating the analysts’ estimates for the adjusted earnings per share of 94 cents, as per Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 14 percent to $3.13 billion in the third quarter of FY 18, beating the analysts’ estimates for revenue by 2.95%. The revenue grew due to broad-based volume growth, increases in fuel recovery, favorable mix, higher supplemental revenue and pricing gains. Expenses declined 2 percent year over year to $1.84 billion, as expenses associated with increased volume and higher fuel prices were more than offset by efficiency gains as CSX continues to implement its scheduled railroading business model.

Moreover, Merchandise revenues grew 12% in the third quarter, helped by lapping some of the service issues last year. Nearly every end market saw a double-digit increase with the exception of Fertilizers, which was impacted by a previously disclosed customer shutdown. Coal revenues increased 14%, with strength in our export business offsetting domestic utility weakness. There has been good growth in the Steel and Industrial businesses. In Intermodal, CSX saw growth from both price and volume. Additionally, operating income grew nearly 50%, combined with the lower tax rate and 6% fewer outstanding shares, contributed to the significant year-over-year increase in the third quarter. The company’s operating ratio improved 970 basis points to 58.7, a substantial improvement and a record third quarter for CSX.