Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Lackluster Q3 Outlook Weighs On Rail Names

T.CNR, NSC, CSX, UNP, T.CP

CSX Corporation (NASDAQ: CSX)'s executive vice president and chief financial officer, Frank Lonegro, warned investors that the volume is expected to drop by high single digit on a year-over-year basis in the third quarter. However, the company indicated that its efficiency continued to gain momentum exceeding its full target of $350 million.

As far as the stocks in the rail-based transportation services, most of the shares are trading in the positive territory.

During the 9th Annual Global Transportation Conference, CSX indicated that total coal tonnage for the current year is predicted to drop 20–25 percent. That meant the company expects export of coal volume to be approximately 25 million tons for 2016. The company pointed out that international market conditions have improved modestly.

Related Link: Airline Stocks Are Strong Today: Here's What You Need To Know

Lonegro said, "Third quarter earnings per share are expected to decline slightly from second quarter levels, based on high single digit volume reductions that are partially offset by improving efficiency benefits and strong pricing gains that reflect a service product that meets and exceeds customer expectations."

After the outlook provided by CSX, the names in the rail segment is given below:

  • CSX traded up by 2.06 percent to $28.70.
  • Norfolk Southern Corp. (NYSE: NSC) was at $93.99, down 1.22 percent.
  • Union Pacific Corporation (NYSE: UNP) traded at $96.26, up 0.3 percent.
  • Canadian Pacific Railway Limited (USA) (NYSE: CP) traded up 0.43 percent at $155.89.
  • Canadian National Railway (USA) (NYSE: CNI) was down 0.09 percent at $65.10.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!



Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today