CSX misses quarterly revenue estimates on waning volumes
2023.07.20 17:29
© Reuters. A CSX coal train (R) moves past an idling CSX engine at the switchyard in Brunswick, Maryland October 16, 2012. REUTERS/Gary Cameron/File Photo
(Reuters) – U.S. railroad operator CSX Corp (NASDAQ:) missed Wall Street estimates for second-quarter revenue on Thursday, hit by a decline in intermodal volumes and lower fuel prices.
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.
“Though intermodal activity remains challenged, our strong service performance distinguishes us in the marketplace and is attracting shippers to our network,” Chief Executive Officer Joe Hinrichs said 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 Jacksonville, Florida-based 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.
