The 10-second takeaway
For the quarter ended March 30 (Q1), CSX beat expectations for both revenue and earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.
Margins expanded across the board.
CSX notched revenue of $2.97 billion. The 19 analysts polled by S&P Capital IQ hoped for revenue of $2.92 billion on the same basis. GAAP reported sales were 5.6% higher than the prior-year quarter's $2.81 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.43. The 26 earnings estimates compiled by S&P Capital IQ averaged $0.38 per share. GAAP EPS of $0.43 for Q1 were 23% higher than the prior-year quarter's $0.35 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.5%, 130 basis points better than the prior-year quarter. Operating margin was 28.9%, 140 basis points better than the prior-year quarter. Net margin was 15.1%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.08 billion. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $12.23 billion. The average EPS estimate is $1.82.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,954 members rating the stock outperform and 68 members rating it underperform. Among 434 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 426 give CSX a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CSX is outperform, with an average price target of $26.77.
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