CSX's Stock Rallies After Railroad Operator Lifts Profit, Volume Outlook

By Markets MarketWatch Pulse

Shares of CSX Corp. climbed 1.3% in premarket trade Tuesday, after the railroad operator provided an upbeat fourth-quarter earnings and volume outlook. Chief Financial Officer Frank Lonegro said at a Credit Suisse industrial conference that he now expects earnings per share to be flat to up slightly, compared with guidance provided earlier this month of "flat to slightly down." And given that "macroeconomic headwinds impacting the company's volume are moderating," Lonegro now expects volume to be flat to up slightly, compared previous guidance of "roughly flat." He said many markets are showing more moderate declines than in previous quarters, with coal in particular is showing sequential volume stabilization and is essentially flat in the quarter to date. The stock has run up 34% year to date through Tuesday, while the Dow Jones Transporation Average has rallied 19% and the S&P 500 has gained 7.9%.

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