Railroad operator CSX (CSX) said after the market closed on Wednesday that its first-quarter net profit rose modestly from a year ago as the company began a new era under famous railroad executive Hunter Harrison, brought on board to turn the company around.
The company earned $362 million or 39 cents a share in the first quarter compared to $356 million or 37 cents a share in the same. A year ago.
Minus a $173 million restructuring charging the first quarter, the company said adjusted earnings-per-share were 51cents.
Revenue grew 10% from a year ago.
The performance was enough to satisfy investors and CSX shares rose 2.9% to 48.30 in after-hours trade.
Analysts on consensus predicted for earnings of 43 cents per share on nearly $2.8 billion in revenues for the first quarter.
"I am pleased to join the CSX team and working together we are going to make this company the best North American railroad, capable of consistently meeting and exceeding the expectations of our customers and our shareholders," said Hunter Harrison, president, and chief executive officer. "As the business environment continues to improve and we implement Precision Scheduled Railroading, CSX will realize these objectives while driving volume growth and achieving a new level of financial performance."
CSX in March reached a deal to install railroad veteran Harrison as its chief executive and appoint five new directors to its board that were approved by both CSX and activist fund Mantle Ridge, including Harrison, Mantle Ridge's Paul Hilal, and three others.
The move was praised by Wall Street likely due to Harrison's impressive turnaround of industry peer Canadian Pacific Railway CP. Harrison, along with Hilal and Pershing Square's Bill Ackman, are well known for engineering a successful insurgency in 2012 that led to Harrison's installation as CEO at Canadian Pacific and a turnaround that helped Canadian Pacific's Toronto-listed shares climb nearly 190% during his tenure.
The company will hold a conference call to review results at 8:30 am EDT on Thursday.