CSX Beats Q1 Expectations, Shares Surge

Shares of

surged over 4 percent in pre-market trading after the company reported better-than-expected earnings for its first quarter and lifted its quarterly dividend. The Jacksonville, Florida-based company posted quarterly net earnings of $442 million, compared to $398 million in the year-ago period. Its earnings per share climbed 13 percent to $0.45 from $0.40. Its revenue in the latest quarter came in at $3.0 billion. However, analysts were expecting a profit of $0.44 per share on revenue of $3.02 billion. Operating income climbed 14 percent to $843 million, while the operating ratio widened 330 basis points to 72.2 percent. The company's board raised the quarterly dividend by 13 percent to $0.18 per share and announced a new $2 billion share repurchase program. "In this dynamic economic and business environment, CSX's core earnings remain strong and we are continuing our drive to provide excellent service for our customers and value for our shareholders," said Michael J. Ward, chairman and chief executive officer. "Our commitment and confidence in CSX's future is underscored by the positive shareholder actions we're taking today." The average estimate among 29 Estimize users was for earnings of $0.46 per share and revenue of $3.08 billion. CSX shares gained 4.07 percent to $34.56 in the after-hours trading session.