CSX Corporation (NASDAQ:CSX) reported earnings for the third-quarter that beat the consensus estimate of Wall Street analysts.
The shares of the company closed $32.61 per share, up by 2.87%. The stock climbed further by to $33.25 per share during the extended hours trading around 4:46 in the afternoon in New York.
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Third-quarter financial results
CSX Corporation (NYSE:CSX) reported that its net earnings for the third quarter was $509 million or $0.51 per share compared with its net income of $455 million or $0.45 per share in the same period a year ago.
According to the railroad company, its earnings were driven by a 7% increase in volume and a broad-based growth across almost all markets it serves.
During the quarter, CSX Corporation (NYSE:CSX) generated $3.2 billion in revenue, an 8% increase from its $3 billion revenue in the year-ago quarter.
Wall Street analysts forecasted that CSX Corporation (NYSE:CSX) will deliver $0.46 in earnings per share and $3.1 billion in revenue for the current quarter based on data compiled by Bloomberg.
The railroad company emphasized that its solid performance demonstrated its ability to leverage the continued economic momentum. CSX Corporation (NYSE:CSX) said its operating income was $976 million and operating ratio was 69.7% during the quarter.
CSX Corporation is focused on executing its core strategy
In a statement, Michael J. Ward, chairman and CEO of CSX Corporation (NYSE:CSX) said, “As the economy continues to expand, the company’s record third-quarter results are built on the foundation of CSX’s network reach, sustainable growth opportunities, and the efforts of our 31,000 employees.”
He added that the company is focused on executing its core strategy. Ward explained that its core strategy means enhancing CSX’s ability to “grow faster than the economy, price above inflation, make strategic investments and produce ever more efficient operations to continue delivering superior shareholder value.
CSX Corporation (NYSE:CSX) expected to maintain double-digit earnings growth and margin expansion next year. The company aims to achieve a mid-60s operating ratio over the long-term.