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CSX Corp. (NASDAQ:CSX) shares are moving higher in after-hours trade following better-than-expected results for Q1, in which the transportation operator reported a profit that was a penny better than estimates.
Revenue was down less than 1% from a year ago to $3.68B but beat estimates by $10M.
Volumes were mixed with intermodal up 7%, and coal higher by 2%, but merchandise volume was down 6% due to declines in agriculture (-6.5%), and minerals (-3.6%). Automobile volumes increased 9.3% in the quarter.
With operating income down 8% to $1.35B year-over-year, operating margin narrowed by 270 basis points to 36.8%.
Fuel costs were lower on a 10% decrease in locomotive fuel prices, but labor and fringe expenses were up 10% due to cost increases attributed to higher headcount, union employee sick benefits, inflation, and other compensation-related expenses.
On the company’s balance sheet, cash and cash equivalents increased by 10% to $1.48B, while long-term debt fell slightly to $17.9B.
CSX competitors Canadian Pacific Kansas City (CP) and Norfolk Southern (NSC) report results on April 24 while Union Pacific (UNP) reports on April 25.
Shares within the sector are mixed with CP higher by 1.7%, but NSC and UNP unchanged to fractionally higher.