CSX Corporation (NASDAQ: CSX) has reported the adjusted earnings per share of 51 cents in the third quarter of FY 17, which is in line with the analysts’ estimates for the adjusted earnings per share of 51 cents according to Zacks. The company had reported the adjusted revenue growth of 1.2 percent to $2745 million in the third quarter of FY 17. The revenue grew year over year due to the core pricing gains. Overall the volumes also grew up 1% year over year. Overall, CSX’s results for the third quarter reflects the resiliency of Precision Scheduled Railroading, even during times of transition. Accordingly, the stock rose over 1.4% on October 17th, 2017 (As of 2:09PM EDT; Source: Google finance)
Moreover, the expenses have fallen $2 million year over year with efficiency gains of $95 million more than offset the cost of inflation and fuel costs that were 19 percent higher on a per gallon basis when compared to the same quarter last year. The total volume for the third quarter was stable, the operating income increased 4 percent to $876 million and the operating ratio grew 90 basis points to 68.1 percent. The long-term debt had totaled $11,788 million compared with $10,962 million at the same time around.
Furthermore, Merchandise revenues fell 3% year over year to $1,688 million in the third quarter. Coal revenues grew 10% year over year to $514 million due to the 5% expansion in volumes. The Intermodal revenues increased 5% year over year to $446 million. On a year-over-year basis, the volumes had expanded 5%. Other revenues grossed $95 million, which is an increase of 23% year over year.
Additionally, CSX has completed the $1.5 billion share repurchase program that was announced in April 2017 and upsized in July 2017, which reflects the management’s confidence in the company’s future.
In addition, CSX has advanced the implementation of Precision Scheduled Railroading and it remains on track to achieve record efficiency gains. Adjusting for restructuring charges, CSX expects to post a full-year operating ratio around the high end of the mid-60s, earnings per share growth of 20-25 percent off the 2016-reported base of $1.81, and free cash flow before dividends of around $1.5 billion.
CSX stock has risen 72.49% in a year (source: Google Finance).