CSX Delivers Q1 Beat, Meanwhile New CEO Brings Both Changes And Challenges
April 21, 2017 - 11:25am
Close on heels of stellar first-quarter results from CSX Corporation (NASDAQ: CSX), Raymond James upgraded its rating on the shares of the company to Outperform from Market Perform. The firm has a new $55 price target for the shares.
Raymond James, as well as Loop Capital Markets in a separate note, looked at the changes and challenges under the new CEO Hunter Harrison.
Raymond James' Q1 Recap
Q1 adjusted earnings per share of $0.51 were up 37 percent year-over-year and ahead of the consensus estimate of $0.43 and Raymond James' estimate of $0.42.
The upside, according to Raymond James, came from stronger pricing and positive mix.
Same-store pricing rose 3.9 percent year-over-year, a pickup in pace from 2.8 percent in the fourth quarter of 2016, helped by improving coal yields.
Intermodal and merchandise decelerated to 2.5 percent from 3.2 percent on weak core intermodal pricing.
Coal volumes were up merely 2 percent.
Higher-priced exports led to a 23 percent year-over-year gain in RTM/coal carloads.
The firm feels the outlook appeared stable, with about 70 percent of the company's book of business expected to be favorable. The firm also noted that CSX's 2017 guidance called for mid-60s operating ratio, 25 percent earnings per share ...Full story available on Benzinga.com
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