Research Desk Line-up: Canadian Pacific Railway Post Earnings Coverage
LONDON, UK / ACCESSWIRE / July 21, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on CSX Corp. (NASDAQ: CSX), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=CSX, following the Company's announcement of its financial results on July 18, 2017, for the second quarter fiscal 2017. The railroad Company reported better than expected revenue and earnings results. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Railroads industry. Pro-TD has currently selected Canadian Pacific Railway Limited (NYSE: CP) for due-diligence and potential coverage as the Company announced on July 19, 2017, its record Q2 2017 earnings results driven by strong top-line growth and continued margin improvements produced by its industry-leading operating model and its 12,000 talented railroaders. Register for a free membership today, and be among the early birds that get access to our report on Canadian Pacific Railway when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CSX; also brushing on CP. With the links below you can directly download the report of your stock of interest-free of charge at:
http://protraderdaily.com/optin/'symbol=CSX
http://protraderdaily.com/optin/'symbol=CP
Earnings Reviewed
For three months ended June 30, 2017, CSX's revenue increased 8% to $2.93 billion from $2.70 billion in Q2 FY16. The increase was primarily due to coal-related gains, strength in core pricing and volume across the other markets, and increased fuel recovery. The Company's revenue surpassed analysts' estimates of $2.85 billion.
For the reported quarter, CSX's total expenses increased 6% on a y-o-y basis to $1.98 billion from $1.86 billion in Q2 FY16. The increase was mainly attributable to a restructuring charge of $122 million, inflation and fuel price increases of $80 million, and volume-related increases of $20 million.
During Q2 FY17, CSX's operating income increased 14% to $958 million from $840 million in the same quarter last year. For the reported quarter, the Company's operating ratio decreased 150 basis points on a y-o-y basis to 67.4%.
For the reported quarter, CSX's net income increased 15% to $510 million from $445 million in Q2 FY16. During Q2 FY17, the Company's EPS was $0.55 compared to $0.47 in Q2 FY16. For the reported quarter, adjusted EPS was $0.64, surpassing analysts' estimates of $0.59.
On July 07, 2017, the Company's Board of Directors approved a cash dividend of $0.20 per common share. The dividend is payable on September 15, 2017, to shareholders of record at the close of business on August 31, 2017. During Q2 FY17, CSX also repurchased $500 million of its shares.
Segment Details
During Q2 FY17, CSX's Merchandise segment's revenue increased 1% on a y-o-y basis to $1.80 billion. For the reported quarter, Merchandise's Agriculture segment's revenue increased 4.3% to $439 million from $421 million in the same quarter last year. During Q2 FY17, Merchandise's Industrial segment's revenue increased 38 basis points to $1.04 billion from $1.03 billion in Q2 FY16. During Q2 FY17, Merchandise Industrial segment's revenue increased 1.3% to $322 million from $318 million in the same quarter last year.
During Q2 FY17, CSX's Coal segment's revenue increased 27% on a y-o-y basis to $530 million. The segment recorded volume of 208,000 up 7% compared to a volume of 195,000 in the prior year's same quarter. For Q2 FY17, Coal's revenue per unit was $2,548, up 19% compared to $2,133 in Q2 FY16.
For the reported quarter, CSX's Intermodal segment's revenue increased 7% on a y-o-y basis to $448 million. The segment reported volume of 718,000, gaining 3% versus volume of 694,000 in the previous year's comparable quarter. For Q2 FY17, Intermodal's revenue per unit totaled $624, up 3% compared to $604 in Q2 FY16.
Balance Sheet
As on June 30, 2017, CSX's cash and cash equivalents increased 9.5% to $620 million from $566 million in Q2 FY16. During Q2 FY17, the Company's net cash provided by operating activities decreased 1.6% to $1.57 billion from $1.59 billion in the same quarter last year.
For the reported quarter, CSX's free cash flow before dividends was $652 million compared to $561 million in Q2 FY16.
Outlook
For FY17, CSX estimates operating ratio in the mid-60s and EPS to grow at 25%.
Stock Performance
At the closing bell, on Thursday, July 20, 2017, CSX Corp.'s stock dropped 1.93%, ending the trading session at $50.87. A total volume of 22.29 million shares has exchanged hands, which was higher than the 3-month average volume of 7.86 million shares. The Company's stock price skyrocketed 2.64% in the last three months, 11.78% in the past six months, and 77.74% in the previous twelve months. Moreover, the stock soared 41.58% since the start of the year. The stock is trading at a PE ratio of 27.78 and has a dividend yield of 1.57%. The stock currently has a market cap of $46.72 billion.
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