CSX Shares Up As Company Beats On Profit, Raises Dividend
CSX Corp. shares rose 2.9% in after-hours trade Tuesday, after the railroad company beat profit estimates and unveiled a dividend hike and $2 billion share buyback program. The company said it had net income of $442 million, or 45 cents a share, in the first quarter, up from $398 million, or 40 cents a share, in the year-earlier period. Revenue came to $3.0 billion, the company said without providing a comparative figure. The number matched the FactSet consensus. The company said a better pricing environment was partially offset by low natural gas prices, the strong dollar and lower fuel recoveries. The board approved a 13% increase in its quarterly dividend to 18 cents a share, along with a new $2 billion buyback. The new dividend will be paid June 15 to shareholders of record as of May 29. Shares are down 8.3% in the year so far, while the S&P 500 has gained 1.8%.
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