CSX Beats Q3 Expectations as Freight Volumes and Fuel Surcharges Lift Results

what happened

CSX reported higher profit and revenue for the third quarter, according to Dow Jones Newswires. The gains were driven by fuel surcharges and higher freight volumes. The railroad operator posted net profit of $1.05 billion, or 57 cents a share, compared with $694 million, or 37 cents, a year earlier. Analysts surveyed by FactSet had expected 53 cents a share.

Revenue rose 12% to $4.02 billion, ahead of the $3.96 billion analysts had forecast. The company attributed the growth to higher fuel surcharge revenue, as well as higher volumes and better pricing in merchandise, intermodal and coal. Chief Executive Steve Angel said, "CSX delivered strong earnings growth in the third quarter as disciplined execution helped us move more freight, for more customers." After the bell, the shares rose 4.7% to $50.67.

why it matters

Profit and revenue above consensus suggest rail freight demand held up through the quarter, a read-through for the wider transport sector. Fuel surcharges pass part of fuel cost changes on to customers, so some of the revenue gain reflects energy prices rather than volume alone.

market impact

Rail stocks: solid freight demand supports sentiment across the transport sector

tags

instruments