Well, the market just dodged its first bullet of earnings season.
CSX the rail operator beat top and bottom line estimates with revenue having grown 22%.
Crucially, the outlook is still solid.
While the economy remains dynamic, our markets overall continue to improve, and our outlook remains positive,” said Michael J. Ward, chairman, president and chief executive officer. “At the same time, CSX has demonstrated that it can be successful in a wide array of economic conditions, and that’s what we will continue to do.”
Revenue in the second quarter increased 22 per cent from the prior year to nearly $2.7 billion, with volume gains across all major markets. Revenue growth and continued operating leverage drove all-time record financial results, including operating income of $768 million and an operating ratio of 71.2 per cent.
“CSX employees remained focused on creating value for our customers to help them compete in today’s economy,” Ward said. “As a result, we delivered another strong quarter of financial results for our shareholders while continuing to make high levels of investment in the nation’s freight rail system.”
Alcoa also reported solid earnings, and as such futures are ticking up modestly after hours.