CSX Stock Falls Despite Q1 Earnings Beat

Expenses jumped due to harsh winter weather

   

CSX Stock Falls Despite Q1 Earnings Beat

On Wednesday, CSX (CSX) reported lower quarterly earnings that still topped forecasts. But investors were unimpressed, sending CSX stock down more than 2% in mid-day trading.

CSX 630 300x225 CSX Stock Falls Despite Q1 Earnings Beat
Source: Flickr

CSX posted a first-quarter profit of $398 million. That was almost 14% lower than the prior-year quarter. EPS came in at 45 cents, which easily surpassed the 37 cents Wall Street was looking for. Q1 revenue of $3 billion rose 1.8% and was inline with expectations, the Wall Street Journal noted.

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Revenue generated from coal shipments dropped 9% during the quarter, while agricultural shipment revenue climbed 18%. Chemical and oil shipment revenue increased 10%.

Harsh winter weather pushed CSX quarterly expenses up 9% to $190 million. On-time train arrivals also plunged from 85% to 51% due to winter storms.

CSX stock closed at $28.29 on Tuesday. Over the past 12 months, CSX stock has climbed about 17%.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/04/csx-stock-falls-despite-q1-earnings-beat/.

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