CSX Profit Falls Short of Analyst Expectations

CSX Q1 net income registered 93 cents per share, down from $1 a share in the year-ago quarter.
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CSX  (CSX) - Get Report shares fell in after-hours trading Tuesday, after the railroad company reported weaker-than-expected profit for the first quarter.

Net income registered $706 million, or 93 cents per share, down from $770 million, or $1 per share, in the year-ago quarter. The FactSet analyst consensus called for EPS of 97 cents for the latest quarter.

Revenue totaled $2.81 billion in the latest quarter, down 2% from $2.86 billion last year. The analyst consensus called for $2.79 billion in the latest quarter.

The stock recently stood at $96.75, down 1.73%, in after-hours trading. It has jumped 25% over the past six months, beating the S&P 500’s 21% gain, amid enthusiasm for vaccines and economic recovery.

“I am extremely proud of how our team of railroaders handled the challenges presented by the difficult operating conditions this quarter,” said CSX Chief Executive James Foote in a statement.

“Looking forward, the strengthening economic momentum is providing added visibility into volume growth, and we are taking the necessary steps to ensure we are ready to handle these volumes and provide our customers with an industry-leading service product.”

In January, TheStreet.com founder Jim Cramer called CSX a buy.

Prior to the earnings report, Morningstar analyst Matthew Young put fair value for CSX at $79.

“Better service opens up greater intermodal opportunities,” he wrote Feb. 26.

“Intermodal saw first-half 2020 volume headwinds from COVID-19 disruption and depressed rates in the competing truckload industry, but has since rebounded nicely on robust retailer restocking and tight truckload market capacity (rising truck-to-rail conversions). We still see it as a key long-term growth opportunity for CSX.”

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