Rival rail operators CSX Corp. and Union Pacific Corp. on Thursday both reported third-quarter results that beat estimates, helped by higher prices and the fuel surcharges they tack on to offset fuel prices. But different outlooks for both companies sent their stocks in opposite directions.
“Ultimately, results were a bit better than expected, which is positive, and following challenging 4Q guidance from Union Pacific, shares should react favorably assuming CSX can avoid a similar step down,” Citi analyst Christian Wetherbee said in a note following CSX’s results. CSX was up 4.1% after hours. Union Pacific crept 0.2% higher after the bell on Thursday. But it finished regular trading 6.8% lower, after the release of its results.
Union Pacific cut its full-year carload growth outlook to roughly 3%, from an earlier forecast for growth of 4% to 5%. CSX reported net income of $1.11 billion, or 52 cents per share, compared to $968 million, or 43 cents per share, in the prior-year quarter. CSX also said that third-quarter results included “additional labor and fringe expenses related to tentative union agreements, with $42 million specifically to adjust for wage, bonus and other benefit costs in prior periods.”
United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: WSJ - 🏆 98. / 63 Read more »