Oct. 14, 2014, 4:08 PM
- CSX (NYSE:CSX) reports a broad-base volume increase of 7% in Q3.
- The operation ratio for the company was 69.7% for the period.
- Guidance: CSX says it expects double-digit earnings and margin gains in 2015.
- CSX +2.2% AH.
Oct. 14, 2014, 4:04 PM
- CSX (NYSE:CSX): Q3 EPS of $0.51 beats by $0.03.
- Revenue of $3.2B (+8% Y/Y) beats by $50M.
Oct. 14, 2014, 10:58 AM
- Canadian Pacific (CP +0.5%) might consider another takeover candidate in the sector if CSX (CSX +2.9%) remain an elusive target, sources tell Bloomberg.
- The M&A fallout in the sector could see CSX combine with Union Pacific (UNP +1.2%) and Norfolk Southern (NSC +1.6%) look to link up with Canadian Railway (CNI -0.8%), says Avondale Partners.
- Another small-sized target could be Kansas City Southern (KSU +2.4%), notes Wolfe Research. KSU might be of interest to a rail carrier looking to network into Texas and Mexico.
- Previous on railroad M&A: CP-CSX, merger rally.
Oct. 14, 2014, 3:23 AM
- Discussions between Canadian Pacific Railway (NYSE:CP) and CSX (NYSE:CSX) about a merger are still possible despite the latter rebuffing an approach from CP, the WSJ reports.
- CP CEO Hunter Harrison believes that a tie-up would help make rail infrastructure more efficient, such as with the handover of goods from one operator to another.
- However, analysts, rivals and shippers fear that any merger would exacerbate congestion delays and increase costs.
- "I think it’s a common belief that now would not be a good time," says a top executive at a major railway company, "because of the regulatory change that would accompany it and the upheaval it would cause the industry."
Oct. 13, 2014, 6:33 PM
- Canadian Pacific Railway (NYSE:CP) reportedly approached CSX about a merger, but several analysts say such a deal has virtually no hope of getting a green light from regulators.
- U.S. Surface Transportation Board rules on Class 1 railway mergers have "an arguably impossible hurdle rate," Credit Suisse analyst Allison Landry says, which makes the deal a "non-starter.”
- At the least, the agency would want CP and CSX to allow other operators to run over their network, and likely want assurances that the merger would alleviate traffic problems that have snarled railroads, particularly around Chicago.
- CP may have an ace up its sleeve: One of its directors chaired the STB and its predecessor agency during 1995-2002, and would bring important knowledge of the regulatory requirements to any possible deal.
- Despite the unlikelihood of a deal, CSX jumped 5.9% during today's trade; CP shares slipped 2.3%.
Oct. 13, 2014, 5:35 PM
Oct. 13, 2014, 10:08 AM
- There's some bets being placed on M&A activity within the railroad sector after a weekend report of interest by Canadian Pacific in CSX (CSX +12.6%) stirs the pot.
- Gainers: Norfolk Southern (NYSE:NSC) +5.1%, Kansas City Southern (NYSE:KSU) +4.2%, Canadian Pacific (NYSE:CP) +3.2%, Union Pacific (NYSE:UNP) +1.0%, Canadian National Railway (NYSE:CNI) +1.3%.
Oct. 13, 2014, 9:15 AM
Oct. 13, 2014, 7:45 AM
Oct. 12, 2014, 4:11 PM
- Canadian Pacific Railway (NYSE:CP) reportedly approached CSX Corp. (NYSE:CSX) during the past week about a potential merger that would unite two of North America's largest railroad operators.
- The approach was rebuffed; it is unclear whether CP has since shelved the effort.
- A deal would create an industry giant with a combined market cap of $62B.
- Any deal would be subject to review by the U.S. Surface Transportation Board, which has a history of intervening.
- Source: WSJ
Oct. 8, 2014, 3:10 PM
- CSX (NYSE:CSX) declares $0.16/share quarterly dividend, in line with previous.
- Forward yield 2.05%
- Payable Dec. 15; for shareholders of record Nov. 28; ex-div Nov. 26.
Sep. 22, 2014, 1:03 PM
- The amount of oil riding on railroads has risen to 1.6M barrels a day, according to data from the Energy Information Administration.
- Revenue for hauling crude has skyrocketed 833% to $2.15B in just five years.
- Analysts think the infrastructure investments made within the industry will provide continued benefits for the group.
- Railroad stocks: UNP, NSC, CSX, CNI, ARII, GBX, CP, KSU, CNI.
Sep. 11, 2014, 5:49 PM
- CSX today raised Q3 EPS guidance to slight growth Y/Y from flat, saying its volume in the current quarter is growing at a faster rate than expected.
- CFO Fredrik Eliasson told the UBS Best of Americas conference in London that crowded and underfunded highway systems are boosting demand for rail transportation.
- The railroad operator expects Q3 EPS at slightly above last year's $0.45, despite increased costs to keep the network fluid and restore higher service levels; the analyst consensus expects $0.47.
- CSX says economic expansion is spurring broad-based growth across nearly all its markets, as the housing market continues to recover, another strong harvest is expected and the energy renaissance continues to drive growth in the industrial sector.
Aug. 12, 2014, 8:28 AM
- Macquarie upgrades Union Pacific (NYSE:UNP) to an Outperform rating from Neutral on its view the railroad operator has one of the steadiest growth profiles in the sector.
- The investment firm cuts CSX (NYSE:CSX) to Neutral from Outperform after seeing its price target go unfulfilled.
- Kansas City Southern (NYSE:KSU) is lifted to Neutral after being stuck with an Underperform rating.
Jul. 15, 2014, 5:11 PM
- CSX -0.3% AH after reporting slightly better than expected Q2 earnings on record quarterly revenue, rising 6.5% Y/Y to $3.24B, as total volume rose 7.5% while average revenue per unit slipped 1%.
- CSX affirms its 2014 outlook for modest earnings and expects double-digit earnings growth and margin expansion to resume next year, citing a positive economic environment and growth trends in the intermodal and oil and gas markets.
- Raises its 2014 spending plan by $100M to $2.4B to support sustainable growth.
- Coal volume rose 6.5% on higher shipments of domestic coal attributable to marketplace gains and utilities replenishing stockpiles.
- The results may help ease concerns that the U.S. economy’s Q1 contraction showed weakness beyond winter-weather disruptions; analysts also project Union Pacific (NYSE:UNP) and Norfolk Southern (NYSE:NSC) to announce sales records.
Jul. 15, 2014, 4:06 PM
- CSX (NYSE:CSX): Q2 EPS of $0.53 beats by $0.01.
- Shares +0.48% AH.
CSX Corp. is a transportation supplier company. It provides rail-based transportation services including traditional rail service and the transport of intermodal containers and trailers. The company through its principal operating subsidiary, CSX Transportation, Inc., provides an important link... More
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