CSX Corp. (NYSE: CSX) has made several announcements this morning for shareholder initiatives. The railroad giant sees first quarter 2008 EPS at $0.74 to $0.77 EPS and put full-year EPS at $3.40 to $3.60 EPS. First Call has estimates for Q1 at $0.63 EPS and fiscal 2008 at $3.05 EPS. Its guidance through 2010 is now being put at 18% to 21% for compounded annual EPS growth, up from 15% to 17%.
It is also targeting its $3 Billion share buyback to be completed by year-end 2009, which is a new authorization of $2.4 Billion in addition to the $600 million available under its existing share buyback plan. In total, this represents about 15% of the market cap.
The railroad giant is also boosting its $0.18 dividend up to $0.20.
One interesting development is that CSX is also filing a lawsuit against The Children’s Investment Fund and 3G Capital Partners alleging violations of federal securities laws. As a result of it trying to show the share swap violations and other initiatives that the two funds have engaged in, the company has rescheduled its annual shareholder meeting.
Jon C. Ogg
March 17, 2008
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