CSX Rides The Reading Railroad (CSX)

March 17, 2008 by Douglas A. McIntyre

CSX Corp. (NYSE: CSX) has made several announcements this morning for shareholder initiatives. The railroad giant sees first quarter 2008 EPS at $0.74 to $0.77 EPS and put full-year EPS at $3.40 to $3.60 EPS.  First Call has estimates for Q1 at $0.63 EPS and fiscal 2008 at $3.05 EPS.  Its guidance through 2010 is now being put at 18% to 21% for compounded annual EPS growth, up from 15% to 17%.

It is also targeting its $3 Billion share buyback to be completed by year-end 2009, which is a new authorization of $2.4 Billion in addition to the $600 million available under its existing share buyback plan.  In total, this represents about 15% of the market cap. 

The railroad giant is also boosting its $0.18 dividend up to $0.20.

One interesting development is that CSX is also filing a lawsuit against The Children’s Investment Fund and 3G Capital Partners alleging violations of federal securities laws.  As a result of it trying to show the share swap violations and other initiatives that the two funds have engaged in, the company has rescheduled its annual shareholder meeting.

Jon C. Ogg
March 17, 2008

Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE

Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here
you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.


Click here
to match with up to 3 financial pros who would be excited to help you make financial decisions.