CSX misses quarterly revenue estimates on waning volumes
7:14 pm Thursday, July 20th, 2023
By Amna Karimi
(Reuters) -U.S. railroad operator CSX Corp missed Wall Street estimates for second-quarter revenue on Thursday, hit by a decline in intermodal volumes and lower fuel prices.
“We expect intermodal volumes to be soft as imports slowed and destocking activity continued,” Chief Executive Officer Joe Hinrichs said on a conference call.
Shares of the Jacksonville, Florida-based company fell about 5% in after market trading.
Railroad companies have been struggling with supply chain disruptions and worker shortages along with the rail regulation continuing to loom, posing regulatory risk for North American railroad operators.
Hinrichs told Reuters that the company continued to hire, but with more focus on certain locations where it had needs.
“Though intermodal activity remains challenged, our strong service performance distinguishes us in the marketplace and is attracting shippers to our network,” Hinrichs added in a statement.
CSX’s operating ratio, a key profitability metric for railroads, was 59.9% in the quarter ended June 30, compared with 55.4%, a year earlier.
Revenue fell about 3% to $3.70 billion in the reported quarter. Analysts on average had expected a revenue of $3.74 billion, according to Refinitiv IBES.
The company, which mainly operates in the eastern United States, posted second-quarter net earnings of $996 million, or $0.49 per share, down from $1.18 billion, or $0.54 per share, a year earlier.
On per share basis the profit was in line with analysts’ estimates.
(Reporting by Amna Karimi in Bengaluru; Editing by Shailesh Kuber)
