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Alberto Abaterusso
Alberto Abaterusso
Articles (1659) 

CSX Plunges After Posting Earnings Miss

The railroad company's revenue also fell short of expectations

July 17, 2019 | About:

Shares of CSX Corp. (NASDAQ:CSX) plunged 6.29% to $74.55 in after-hours trading on Tuesday after missing consensus estimates for GAAP earnings and revenue for the second quarter of 2019.

GAAP earnings per share were $1.08 versus projections of $1.10. They increased 6.9% compared to the prior-year quarter.

Revenue was $3.06 billion, down 1% year over year as a result of weakness in the company's intermodal business, which offset merchandise growth. Second-quarter revenue fell $80 million short of expectations.

The Jacksonville, Florida-based provider of rail-based freight transportation services also reported that, due to improved operational efficiency and volume-related cost savings, total expenses declined 3% to $1.76 billion. Therefore, operating income increased 2% to $1.31 billion.

Further, CSX achieved an 120 basis-point improvement in its operating ratio to a second-quarter record of 57.4%. In the same quarter of 2018, the operating ratio was 58.6%. The OPEX compares the company's total operating expenses to its net sales to determine how efficient management is.

The stock has gained 15% over the past year to $79.55 per share, for a market capitalization of $64.4 billion at close on July 16. The share price is slightly off the 50- and 100-day simple moving average lines and well above the 200-day line. The 52-week range is $58.47 to $80.73.

Analysts assigned an overweight recommendation rating with an average target price of $82.10 per share. The overweight rating means analysts expect the stock to outperform either the industry or the overall market.

Disclosure: I have no positions in any securities mentioned.

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About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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