CSX stock drops 3.3% on worse-than-expected Q3 results

JACKSONVILLE, Fla. - CSX Corp. (NASDAQ:CSX ) reported disappointing third quarter results on Wednesday, with earnings and revenue falling short of analyst expectations despite growth in volume and operating income.

CSX shares were down 3.3% in aftermarket trading Wednesday.

The railroad operator posted adjusted earnings per share of $0.46, missing the analyst consensus of $0.48. Revenue came in at $3.62 billion, below estimates of $3.68 billion but up 1% YoY. Total volume increased 3% compared to the same quarter last year.

Operating income rose 7% to $1.35 billion, while the operating margin expanded 180 basis points to 37.4%. Net earnings grew to $894 million from $828 million in the prior year period.

CSX CEO Joe Hinrichs said, "CSX's commitment to excellent service allowed us to deliver meaningful growth in volume, operating income, and operating margin in the third quarter."

The company saw growth in merchandise and intermodal volumes, along with pricing gains in merchandise. However, this was partially offset by lower coal revenue due to declining global benchmark prices, as well as reduced fuel surcharges.

Hinrichs noted that CSX faced "significant challenges" from recent hurricanes but maintained network flexibility and resilience thanks to employee dedication.

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Source: Investing.com