Railroad operator CSX beats quarterly profit estimates on higher volumes
Intermodal shipping, which involves two or more means of transportation for goods and accounted for 14% of its overall revenue in 2024, saw a 2% rise in volume during the quarter.
CSX chief executive Joe Hinrichs said on Wednesday that while uncertainty continues to impact select industrial markets, the company remained focused on completing two major infrastructure projects that will "strengthen our position to execute on many profitable growth opportunities ahead."
Shares of the Jacksonville, Florida-based company rose 2% in extended trading.
The railroad operator is reportedly in discussions to appoint financial advisers as it explores strategic options amid growing speculation of a potential merger with its West Coast peer BNSF Railway, owned by Warren Buffett's Berkshire Hathaway (BRKa.N), opens new tab.
Meanwhile, according to reports, larger rival Union Pacific (UNP.N), opens new tab is exploring a potential acquisition of Norfolk Southern (NSC.N), opens new tab, a move that could create a $200 billion coast-to-coast rail network and significantly reshape the U.S. freight industry.
CSX maintains a fleet of more than 3,500 locomotives and about 51,000 freight cars, according to its website.
However, any merger would be subject to approval from the Surface Transportation Board, a regulatory body that oversees railroads.
On an adjusted basis, it reported a profit of 44 cents per share, above the analysts' average estimate of 42 cents per share, according to data compiled by LSEG.
The company reported revenue of $3.57 billion in the quarter ended June 30, missing estimates of $3.58 billion.
The company's operating margin was 35.9% for the quarter, down by 320 basis points from last year.
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