CSX Beats 3Q Profit Expectations, Tees Up More Stock Buybacks
October 21 2020 - 4:48PM
Dow Jones News
By Micah Maidenberg
CSX Corp. reported third-quarter results that were better than
in the second period, but the railroad company still has a ways to
go to recover from the economic downturn caused by the Covid-19
pandemic lockdowns.
Despite that challenge, the Jacksonville, Fla.-based company
said Wednesday its board authorized spending an additional $5
billion on share repurchases. That adds to $1.1 billion CSX
currently has available for buybacks.
The railroad company focused on parts of the Northeast, the
Midwest and the South reported a quarterly profit of $736 million,
or 96 cents a share, down from $856 million, or $1.08 a share, for
the year-earlier period.
Analysts expected 92 cents a share in earnings for the latest
period, or 93 cents a share following adjustments.
Revenue for the third quarter fell 11% year over year to $2.65
billion, CSX said. Analysts had forecast $2.67 billion for the
third quarter.
During the second quarter, CSX reported a profit of 65 cents a
share on $2.26 billion in revenue, according to FactSet.
Railroads have been hurt as the coronavirus pandemic rippled
through the industrial sector and consumer economy, dampening
demand for all manner of goods.
CSX said coal-related revenue dropped 36% in the third quarter
compared with last year. Revenue from metals and related equipment
shipments slid 18%, while those for automotive products fel 9%.
Intermodal revenue was flat year over year.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
October 21, 2020 16:33 ET (20:33 GMT)
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