CSX Corporation (CSX) Beats On Q3 Earnings And Revenues
Zacks Investment Research | Oct 13, 2016 07:32AM ET
CSX Corporation (NASDAQ:CSX) reported third-quarter 2016 earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 45 cents.
Revenues of $2.71 billion outpaced the Zacks Consensus Estimate of $2.68 billion but declined 7.8% year over year due to a 8% overall decrease in volumes. The company’s lower volumes can be attributed to more than 21% coal volume decline. Third-quarter operating income also fell 10% year over year to $841 million. Moreover, operating ratio (defined as operating expenses as a percentage of revenues) contracted 70 basis points to 69%. Operating expenses decreased 7% year over year to $1.87 billion.
Segmental Performance
Merchandise revenues dipped 4% year over year to $1,741 million in the quarter owing to 5% decrease in volume. This was largely a result of a revenue decline of 7% and 8% in Chemicals and Agricultural and Food Products segments, respectively.
Coal revenues plunged 20% year over year to $467 million due to a 21% reduction in volumes owing to soft global coal demand and declining fuel prices.
Intermodal revenues dropped 6% year over year to $425 million. On a year-over-year basis, volumes declined 7%.
Other revenues grossed $77 million, down 10% year over year.
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