For the first quarter the railroad company posted earnings of 40 cents a share. Analysts surveyed by Thomson Reuters expected earnings of 37 cents a share, which the company beat by 3 cents. Revenue grew 2% from the year-ago quarter to $3 billion.
CSX said that operating income declined 16% to $739 million due to the harsh winter. The company estimated that weather-related disruptions increased expenses by about 6 cents a share, and impacted revenue contribution by about 2 or 3 cents.
The company also declared a 16 cent a share quarterly dividend, a 7% increase from its previous dividend. The dividend is payable on June 13 to all shareholders of record as of May 28.
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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 revenue growth, reasonable valuation levels, good cash flow from operations, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."