On Monday, U.S. railroad operator CSX Corp. (NASDAQ: CSX) narrowly beat second-quarter profit estimates, helped by higher shipment volumes and robust pricing, sending its shares up 5% after the bell.
Improving intermodal volumes, or goods moved via two or more modes of transport, have helped railroads squeeze out profits along with higher-than-inflation pricing, even as the overall freight industry continues to face a downturn.
CSX’s revenue from intermodal shipments was $506 million in the reported quarter, 3% higher than a year ago.
The Jacksonville, Florida-based company reported revenue of $3.7 billion in the second quarter, in line with analysts’ estimates.
It reported a profit of 49 cents per share, above analysts’ estimate of 48 cents per share, according to LSEG data.
Its operating margin was 39.1% for the quarter, down 50 basis points from a year earlier.
CSX’s (NASDAQ: CSX) east-coast competitor Norfolk Southern also reported second-quarter profit above estimates last month, helped by higher pricing.
(Source: Reuters)
Jennifer Tacker is a staff writer at ABBO News. She holds a B.A. from the University of Waterloo and a B.Ed from Western University. Jennifer has been active in the stock market and crypto sector for a decade. She specializes in technical analysis and trading strategies.
