Investing.com -- Shares in CSX Corporation (N:CSX) ticked up in after-hours trading after one of the nation's top railroad companies posted mixed results with its third-quarter report released on Tuesday evening.
Although the Jacksonville-based transportation company exceeded analysts' expectations with its quarterly earnings, it still saw its revenues sink by 9% amid lower fuel recovery, volume decline and a transition within the company's business mix. CSX still reported earnings per share of 0.52 for the quarter, slightly above analysts' forecasts of per share earnings of 0.50.
The company earned revenue of $2.94 billion for the three-month period, below expectations for revenues of $2.97 billion on the quarter.
"CSX's third quarter results demonstrate the company's ability to leverage improving service while controlling costs in a dynamic environment where commodity prices and the strength of the U.S. dollar are challenging many of our markets," said Michael J. Ward, chairman and chief executive officer. "Our performance supports strong pricing and continued efficiency gains as we continue to drive value for customers and shareholders."
Despite the considerable revenue declines, CSX was still able to cut its expenses by 11% on a year-over-year basis, resulting in operating income for the quarter of $933 million and a record operating ratio of 68.3%.
CSX still expects to reach its target of mid-single digits earnings growth for the fiscal year as a whole, in spite of subdued forecasts regarding coal revenue. During the 2015 fiscal year, CSX expects coal revenue to decline by $450 million, amid low natural gas prices and high inventory levels.
CSX links more than 240 short-line railroads and more than 70 ocean, river and lake ports to major centers throughout North America.
Shares in CSX rose 0.29 or 1.05% to 28.00 in after-hours trading.