In Wednesday trading, shares of CSX Corp. (CSX, Financial) jumped more than 6% after announcing its first quarter results. The company registered earnings per share of 78 cents on revenue of $2.88 billion, a 0.3% year-over-year increase. The company beat earnings by 12 cents and by $50 million in revenue.
Further, the expenses lowered 13% year-over-year or 8% when excluding prior-year restructuring charges. Operating income increased 36% to $1.04 billion when compared to $769 million in the same period last year or 19% when compared to the adjusted operating income of $879 million reported in the first trimester of 2017. The operating ratio for the quarter improved 950 basis points to 63.7% from 73.2% in the prior year.
“CSX employees did a great job of running the railroad and executing the scheduled railroading model during challenging weather conditions,” said James M. Foote, the company's president and CEO. “We’re more confident in our ability to deliver safe, reliable, best-in-class service for our customers and enhanced value for our shareholders.”
Shares of Textron Inc. (TXT, Financial) rose on the heels of the company reporting its financial results for the first quarter. The company posted earnings per share of 72 cents on revenue of $3.3 billion. The company´s revenue was higher than the figure reported a year earlier, 6.8% year-over-year. The company beat earnings estimates by 20 cents and by $210 million in revenue.
Moreover, the company’s board of directors has authorized the repurchase of up to 40 million shares of the common stock. The new authorization replaces a previous one, which was at completion.
Looking ahead, the company confirmed its 2018 earnings per share in the range of $2.95 to $3.15. Further, it projects cash flow from continuing operations of the manufacturing group before pension contributions of $700 million to $800 million.
Chairman and CEO Scott C. Donnelly said, “We are on track for a strong 2018 as we continue our focus on operational improvement and look to capitalize on improving end markets.”
Disclosure: The author holds no position in any stocks mentioned.
