CSX (CSX 52.94, +0.10) has added 0.2% after reporting in-line earnings for the third quarter.
The rail carrier reported in-line third quarter earnings of $0.51 per share on a 1.2% year-over-year increase in revenue to $2.74 billion, which was just shy of expectations.
The company's revenue growth rate was fueled by core pricing gains and partially offset by the impact of unfavorable mix.
Operating ratio improved by 90 basis points year-over-year to 68.1%. The company expects to achieve record efficiency gains thanks to the implementation of Precision Scheduled Railroading, which is now mostly complete.
Average train velocity declined to 14.0 mph in the third quarter from 16.2 mph in the second quarter. However, average train length increased to 6,833 feet from 6,430 feet in the second quarter.
Total employee count declined to 24,608 from 25,785 in the second quarter and 26,504 in the first quarter.
Looking ahead, the company reaffirmed its guidance for full year earnings between $2.17 per share and $2.27 per share. Overall, the company has a neutral outlook for fourth quarter volumes. The company has a favorable outlook for export coal and intermodal shipments, which make up roughly 50.0% of total volume. CSX has a neutral outlook on agriculture & food and metals & equipment shipments that amount to 11.0% of total shipment volume. CSX expects that remaining categories (automotive, chemical, domestic coal, fertilizer, forest products, and minerals) will face headwinds in the fourth quarter.