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CSX profit tops Wall St target on cost cuts, pricing power | Reuters

(Reuters) – CSX Corp (CSX.O) on Tuesday posted quarterly profit that topped Wall Street’s target, as the No. 3 U.S. railroad operator benefited from an ongoing cost-cutting drive and rising prices for carrying freight.

CSX shares gained 3.2 percent to $66.50 in extended trading after the company also raised its 2018 revenue forecast, citing strength in its high-margin coal business and a healthy economic backdrop.

Second-quarter net income jumped 72 percent to $877 million, or $1.01 per share, blowing past analysts’ average forecast of 87 cents per share, according to Thomson Reuters I/B/E/S.

Operating ratio, which measures operating expenses as a percentage of revenue and is a closely watched gauge of railroad performance, fell more than expected to 58.6 percent from 67.4 percent in the year-earlier quarter. CSX had aimed to lower the ratio to 60 percent by 2020.

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CSX profit tops Wall St target on cost cuts, pricing power | Reuters.