CSX Corp. (NASDAQ: CSX) reported its first-quarter financial results after the markets closed on Tuesday. The company had $0.37 in earnings per share (EPS) on $2.62 billion in revenue, compared to consensus estimates from Thomson Reuters that called for $0.37 in EPS on $2.68 billion in revenue. The same period from last year had $0.45 in EPS on $3.03 billion in revenue.
Revenues for the quarter fell 14%, reflecting lower fuel recovery, a 5% volume decline and a $95 million decline in other revenue related to payments received in 2015 from customers that did not meet their minimum volume commitments.
Ultimately, these impacts more than offset pricing gains across nearly all markets from an improving service product and volume growth in automotive, intermodal, minerals and waste and equipment.
During this quarter, CSX reduced its cost structure in the face of the challenging market environment. Additionally, the reduction in the price of fuel decreased fuel expenses for the quarter as well.
Michael J. Ward, chairman and CEO, commented:
As we managed through the impact of the continued coal decline and other market forces during the first quarter, CSX took aggressive actions to improve efficiency, reduce costs and streamline resources across the network to further reshape the company.
Ward continued:
While CSX delivered strong efficiency gains in the first quarter, we continue to expect full-year earnings per share to decline in 2016 as a result of ongoing coal headwinds combined with other market fundamentals. At the same time, CSX remains focused on meeting and exceeding customer expectations while driving further efficiency savings to maximize shareholder value and achieve a mid-60s operating ratio longer term.
Shares of CSX closed Tuesday up nearly 2% at $24.99, with a consensus analyst price target of $27.22 and a 52-week trading range of $21.33 to $37.67. Following the release of the earnings report, the stock was initially up 0.4% at $25.09 in the after-hours trading session.
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