CSX Beats Views On Crude Shipments, Bullish On 2015
Rail company CSX topped third-quarter estimates late Tuesday and forecast double-digit gains in the next fiscal year, buoyed by energy industry shipments and a stronger overall U.S. economy.
Earnings rose 11% to 51 cents a share, topping views by 3 cents. Revenue rose 7% to $3.2 billion, nudging past analyst forecasts for $3.15 billion.
CSX (CSX) shares rose 2% to 33.26 in after-hours trading on the stock market today. The stock rose 3% to 32.61 during the regular session.
CSX is the first major railroad to report this season. Kansas City Southern (KSU), which reports Friday before the market opens, and Union Pacific (UNP), due Oct. 23, are both seen making double-digit percentage earnings gains.
CSX said that it sees double-digit earnings growth and margin expansion in 2015. Frac sand deliveries by rail continue to flow, while a boom in U.S. crude production has ramped up oil shipments via railroad.
CSX's chemicals revenue soared 19% to $558 million — now 17% of the total — fueled by crude-related shipments. Meanwhile, coal revenue was essentially flat in Q3.
Kansas City Southern shares rose fractionally in after-hours trading after closing 3% higher. Union Pacific shares edged higher late after a 2% regular-session gain.
CSX reportedly turned down a recent merger offer from Canadian Pacific Railway (CP), but sources told the Wall Street Journal that a deal is still possible.
In another sign of healthy shipping activity, trucking firm J.B. Hunt Transport Services (JBHT) said early Tuesday that its Q3 EPS grew 16% to 87 cents, beating Wall Street forecasts by 3 cents. Revenue rose 12% to $1.6 billion, just above forecasts. J.B. Hunt shares rose 3% to 73.47 on Tuesday.
