Omaha, Nebraska – CSX Railroad’s second-quarter profits more than doubled as the economy continued to recover from the depth of the coronavirus pandemic, carrying 27% more cargo than a year ago.
The Jacksonville, Florida-based railroad said Wednesday that it generated $ 1.17 billion in revenue (52 cents per share) during the quarter. That’s an increase from $ 499 million a year ago, or 22 cents per share. This year’s results included a temporary increase of 12 cents per share in connection with the sale of $ 349 million of real estate rights for passenger rail services to Virginia.
Adjusted results of 40 cents per share exceeded the average estimate of six analysts surveyed by Zacks Investment Research for adjusted earnings of 37 cents per share.
The number of cargoes delivered by CSX has skyrocketed in all categories of cargo compared to a year ago when the economy slowed to crawl due to pandemic-related restrictions.
Jimfoot, CEO of CSX, said:
According to Freight Railway Company, sales during this period increased 33% to $ 2.99 billion, which is also higher than Street’s forecast. The three analysts surveyed by Zacks expect to generate $ 2.97 billion in revenue.
CSX is sticking to the outlook for double-digit revenue growth this year.
While the economy looks strong today, Foote says, many companies, including CSX, face the challenge of getting the supplies and employees they need. According to Foot, the railroad could only hire about 200 of the 500 new hires who have been on board since January.
“For the past six months, I and someone else haven’t been able to understand how difficult it is to get people to work these days,” Foote said. “Just as it’s hard to find someone who wants to be a barista, it’s a big challenge to get out and find someone who wants to be a conductor. It’s very difficult.”
CSX and other major railroads were hit by a surge in shipments that began late last year and continues today, after a sharp drop in shipments during the first months of the coronavirus outbreak.
Edward Jones analyst Jeff Windau said CSX managed these large volume fluctuations well.
“Sure, it was a very difficult time for them to manage, but they did a really solid job,” Window said.
After the release of the earnings report, CSX shares rose 3% in after-hours trading on Wednesday.
CSX operates over 21,000 miles (34,000 kilometers) of railroad tracks in 23 eastern states and two Canadian states.
The elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Go to CSX’s Zacks Stock Report at https://www.zacks.com/ap/CSX
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CSX 2Q profits have more than doubled due to a 27% increase in railroads.
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