CSX meets 3Q profit forecasts, falls short on revenue
CSX Corp. reported third-quarter earnings that met expectations, but its revenue took a hit as the company suffered service delays while overhauling its operations.
The freight railroad company acknowledged that it struggled to execute its new operating plan. Those problems were further aggravated by two major derailments and the impact of Hurricane Irma, which hit Florida in September, disrupting the operations of the Jacksonville-based company.
CSX reported net income of $459 million, or 51 cents a share, matching the average per-share estimate of 11 analysts surveyed by Zacks Investment Research. That was up from $455 million, or 48 cents a share, a year ago.
It posted revenue of $2.74 billion in the period that ended Sept. 30, falling short of the $2.77 billion expected by seven analysts surveyed by Zacks. It posted revenue of $2.71 billion in the same quarter last year.
The company announced in early September that its service had improved, but that it was trimming its profit outlook for the year.
CSX's moves are all part of the operating plan new CEO Hunter Harrison brought with him when he was hired in March. The 72-year-old previously used tighter train schedules and lean expenses to generate significant profits at Canadian Pacific and Canadian National railroads.
As part of the changes, CSX has eliminated 3,700 jobs this year.
CSX is also changing the way trains are assembled at some railyards, reducing its number of internal divisions and consolidating all nine of its dispatching offices into one.
The railroad operates more than 21,000 miles of track in 23 Eastern states and two Canadian provinces.
Shares in CSX traded up 1.6 percent in afternoon trading. The company's stock is up more than 70 percent in the past 12 months and almost 50 percent since the beginning of the year.
Elements of this story were generated in part by Automated Insights using data from Zacks Investment Research. Access a Zacks stock report on CSX at https://www.zacks.com/ap/CSX