Service improvement in the spotlight as CSX and Union Pacific kick off rail earnings

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Norfolk Southern and Canadian Pacific Kansas City report next week.

Railroad earnings reporting season kicked off this week with CSX Corp. and Union Pacific Corp. both beating Wall Street’s top and bottom line estimates Thursday.

CSX’s CSX stock rose 3.4% Friday, while Union Pacific’s UNP stock fell 2.1%. The S&P 500 Index SPX rose 0.01%. RBC Capital Markets also raised its CSX price target to $33 from $32. “CSX’s strong operating performance metrics have translated into notable business wins, which in our view will allow the company to grow at a faster rate than its peers,” wrote RBC analyst Walter Spracklin, in a note released Thursday. RBC reiterated its outperform rating for CSX.

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