CSX Shares Surge On Upbeat Earnings

Shares of

jumped over 3 percent in after-hours trading after the company reported better-than-expected earnings for the second quarter of 2015. The Jacksonville, Florida-based company posted quarterly net earnings of $553 million, or $0.56 per share, compared to $529 million, or $0.53 per share, in the year-ago quarter. Its revenue slipped 6 percent to $3.06 billion. However, analysts were expecting earnings of $0.53 per share on revenue of $3.12 billion. The average estimate among 29 Estimize users was for earnings of $0.54 per share and revenue of $3.16 billion. Its expenses declined 9 percent during the quarter. The company's operating income jumped to $1.02 billion, compared to $997 million, in the year-earlier quarter. "While we saw challenges in a number of markets, CSX employees delivered an even safer, more reliable and more differentiated service product this quarter," said Michael J. Ward, chairman and chief executive officer. "We expect the momentum in network performance we saw in the second quarter to accelerate, continuing to create value for our customers and shareholders." CSX projects mid-to-high single digit EPS growth for FY15. The company said that the upper end of FY15 outlook has 'become more challenging given the current energy environment.' The company now projects 2015 domestic coal volume to drop by around 10 percent. CSX shares climbed 3.06 percent to $33.05 in the after-hours trading session.