Transportation
Why Earnings Are Not the Only Thing Driving CSX Shares Higher
Published:
Last Updated:
When CSX Corp. (NASDAQ: CSX) reported its first-quarter financial late on Wednesday, the company said that it had $0.51 in EPS and $2.87 billion in revenue. That compared with consensus estimates from Thomson Reuters that called for $0.43 in EPS and revenue of $2.76 billion. In the same period of last year, it posted EPS of $0.37 and $2.62 billion in revenue.
Apart from this, the company also announced that it will increase its quarterly dividend by 11% and introduce a new $1 billion share repurchase program. Adjusting for restructuring charges in 2017, these actions are expected to drive a full-year operating ratio, EPS growth of around 25% off the 2016 reported base, and free cash flow before dividends of around $1.5 billion.
In line with the company’s balanced approach in deploying capital, CSX now expects to invest $2.1 billion in 2017, including roughly $270 million for Positive Train Control. Of the 2017 investment, more than half will be used to sustain core infrastructure with the balance allocated to projects supporting profitable growth, efficiency initiatives and service improvements.
E. Hunter Harrison, president and chief executive, commented on joining the company:
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. 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.
He also added:
Although we are just in the beginning phase of making changes to our network, we are off to a great start. These changes are critical to driving strong, sustainable service for our customers and superior value for our shareholders.
Shares were last seen Thursday up 6% at $49.88, with a consensus analyst price target of $52.58 and a 52-week trading range of $24.43 to $51.27.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.