CSX Stock Higher, Barclays Raises Earnings Estimates

CSX earnings estimates for fiscal 2016 and 2017 were raised at Barclays earlier today, after the company reported Q2 earnings on Wednesday.
By Natalie Walters ,

NEW YORK (TheStreet) -- CSX Corp.'s (CSX) - Get Report 2016 and 2017 earnings estimates were raised to $1.72 from $1.65 per share and to $1.85 from $1.80 per share, respectively, at Barclays earlier today. The changes come as the company released better-than-expected 2016 second quarter earnings on Wednesday.

The firm has an "equal weight" rating and a $26 price target on the Jacksonville, FL-based transportation company.

CSX reported adjusted earnings of 47 cents per share, beating analysts' estimates of 44 cents per share. Additionally, the company posted revenue of $2.7 billion for the quarter, slightly above expectations for $2.69 billion.

"Perhaps we are near the bottom for CSX and other rails given stability in June volume trends, a favorable outlook for agriculture markets and consistent measures of US economic expansion," Barclays noted. 

Continued risks, such as a high USD and "broader transport data that has yet to turn overtly positive," keep the firm from having a more bullish view. 

Shares of CSX are up 2.59% to $28.94 in early-morning trading on Thursday.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate CSX CORP as a Buy with a ratings score of B. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: CSX

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