NEW YORK (TheStreet) -- Shares of CSX Corp. (CSX) are down 0.22% to $36 in pre-marker trade after a train carrying more than 100 tankers of crude oil derailed during a snowstorm in southern West Virginia yesterday, sending at least one tanker into the Kanawha River, igniting at least 14 tankers in all and sparking a house fire, officials said, according to Fox News.
The company said last night CSX personnel and agencies are continuing their assessment to determine the number of cars derailed and resulting oil loss. The company is working to contain oil found in a creek that runs parallel to CSX tracks, and water utilities on the nearby Kanawha River are taking precautions. Fires around some of the cars will be allowed to burn out.
CSX teams also are working to deploy environmental protective and monitoring measures on land, air and in the Kanawha River. The company also is working with public officials and investigative agencies to address their needs.
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The train consisted of two locomotives and 109 rail cars and was traveling from North Dakota to Yorktown, VA. All of the oil cars were the CPC 1232 models.
Separately, TheStreet Ratings team rates CSX CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CSX CORP (CSX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 33.51% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CSX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- CSX CORP has improved earnings per share by 16.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CSX CORP increased its bottom line by earning $1.93 versus $1.83 in the prior year. This year, the market expects an improvement in earnings ($2.15 versus $1.93).
- Despite its growing revenue, the company underperformed as compared with the industry average of 14.0%. Since the same quarter one year prior, revenues slightly increased by 5.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has increased to $1,041.00 million or 35.54% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 7.31%.
- You can view the full analysis from the report here: CSX Ratings Report