CSX reported Q2 EPS of $0.47/share, which was above both Deutsche Bank's estimate of $0.41 and the consensus of $0.44.
"Increased labor productivity was aided by $50 million of efficiency savings as the company's train length initiative and increased velocity bolstered earnings," analyst Robert Salmon wrote in a note.
Same-store sales rose 2.9 percent in the second quarter and the core merchandise intermodal pricing was up 4.0 percent last quarter.
"CSX's results were impressive in a tough backdrop amidst a 9 percent decline in volumes as well as mix and fuel headwinds," Salmon noted.
The company reiterated its expectation of year-over-year EPS declines in 2016 and remains committed to achieving a mid-60s OR longer term.
The analyst, who has a $27 price target on the stock, said CSX remains Hold-rated as he sees a balanced risk/reward around current levels.
At time of writing, shares of CSX rose 1.81 percent on the day to $28.72.
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