CSX Corp. Maintains Q4 View, Projects Strong ’15; Shares Up

Railroad operator, CSX Corporation (CSX) assured its investors of a strong performance in the next quarter of fiscal 2014 by reiterating its fourth quarter and fiscal 2014 outlook. Following the favorable projection, the stock price of the company jumped 2.3% and is presently hovering near a 52-week high range. The company eventually ended the day’s trading session at $37.26, reflecting a solid 44% return over the past 12 months.

The company, which performed impressively in the third quarter, expects to deliver similar financial results in the final quarter of the year. In the third quarter of 2014, CSX Corp. surpassed both the top and the bottom line of the Zacks Consensus Estimate.

Moreover, CSX Corp. hopes to deliver double-digit earnings growth and margin expansion in 2015 mainly banking on improving efficiency and positive economic trends.

We also believe that favorable factors like rail industry pricing, recovery of the construction sector, ongoing truck-to-rail conversion, and the expansion of network and terminal capacity have further encouraged the company to hold such optimism on its future performance.

Meanwhile, in order to drive growth in the forthcoming quarters, CSX Corp. has taken strategic decisions like adding locomotives, hiring new train crew employees, expediting capacity projects and making adjustments to its operating processes. Hence, execution of such procedures will certainly deliver yield favorable results for the company while moving ahead.

CSX Corp. was also in the news recently when merger talks with railroad operator Canadian Pacific Railway (CP) failed to materialize.

Zacks Rank

CSX Corp. presently carries a Zacks Rank #2 (Buy). Other well-ranked stocks in the related sector include Kansas City Southern (KSU) and CH Robinson Worldwide Inc. (CHRW). Both the stocks hold the same Zacks Rank as CSX Corp.