Edward Jones analyst Logan Purk said most of the factors hurting CSX’s results are out of the railroad’s control, such as the health of the economy, natural gas prices and weather.
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Net income at the second-largest USA railroad fell 0.4 percent to $507 million for the fiscal quarter ended September 30, from $509 million in the year-ago period. CSX Corporation has a 52 week low of $24.47 and a 52 week high of $37.99.
Though revenue declined 9% as pricing gains were more than offset by the combination of lower fuel recovery, a 3% volume decline and continued transition in CSX’s business mix, continued low fuel prices, cost reductions reflecting lower volume and savings from “efficiency initiatives” reduced the company’s expenses by 11%. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link.
Total volumes dropped 3 percent to 1.71 million units, while revenue per unit dropped 6 percent to $1,717 from $1,832 past year.
The company exited the third quarter with cash and cash equivalents of $966 million compared with $961 million at the end of 2014. The standard deviation reading, which is a measure by which the stock price is expected to swing away from the mean estimate, is at $3.38. This represents a $0.72 dividend on an annualized basis and a yield of 2.65%. Zacks cut shares of CSX from a “hold” rating to a “sell” rating in a research report on Tuesday, June 30th. Finally, Credit Suisse restated an outperform rating and issued a $36.00 price objective (down from $37.00) on shares of CSX in a report on Thursday, July 2nd. Of the 31 analysts who cover the stock, 17 suggest a Buy, whereas 14 recommend a Hold rating. The stock has a consensus rating of “Buy” and a consensus target price of $35.44.
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CSX Corporation (NYSE:CSX) moved in red zone with decline of -2.33%. The Company provides rail-based transportation services, including traditional rail service and the transport of intermodal containers and trailers. The Company has three lines of business: products company, coal company as well as the intermodal business. A few bright spots, such as autos and containerized consumer goods, helped mitigate the declines. Its coal business transports national coke coal and iron ore to electricity-generating power plants, steel makers and industrial plants, together with export coal to deep water port facilities. Through a network of around 50 terminals, the intermodal business functions markets east of the Mississippi and transportation made consumer goods providing truck- for cargoes that are longer.
