CSX Corporation (NYSE:CSX) Heavy Weight After Q1 Results


Dallas, Texas 04/22/2014 (FINANCIALSTRENDS) –  CSX Corporation (NYSE:CSX) has brought out fiscal results for the first quarter of 2014. First, the bad news of the quarterly report card – earnings have declined. Second, the decline was no as high.

Q1 results

CSX Corporation (NYSE:CSX) has reported the revenues for the company have grown by over 2%, reaching $3 billion. Even the volumes too were up substantially following this reportage. However, the operating profits were less than 16%, with decline in the per-share profit at 11%, reaching $0.40. Again, as the free cash flow weakens, over the previous year for $240 million during the first quarter in 2013. The cash profits too were found to shrink to less than half during the first quarter of 2014.

CSX Corporation (NYSE:CSX) results were therefore, not as positive as expected.

However, management have always asserted that the despite the drop in earnings, it will remain recover. Management has been categorical that the recovery from the first quarter decline will be comprehensive.

Additionally, CSX Corporation (NYSE:CSX) management are very clear that the management will continue to grow profit to sustain “double-digit earnings growth and margin expansion for its shareholders in 2015 and beyond.”

CSX Corporation (NYSE:CSX) emphatic assertion that it will put behind all of the recent quarters’ sluggishness has given rise to a new momentum, which is expected to see the prices of this stock rise, as well as increase valuation.

Experts are also assertive that the management’s claim is far-fetched, given the wide-difference between the company and the rest of the industry peers. Additionally, they predict that this lag will remain for more than 5 years. At the most, the company will barely cross 10% in earnings growth, in the future!

However, the one factor which stands in favor of CSX Corporation (NYSE:CSX) is its Profit to Earnings ratio of 15.66. It has a market capital of $28.04 billion and will see one of the longest rides home for the company.