CSX's stock drops after profit growth, operating ratio outlook cuts
Shares of CSX Corp. shed 1% in premarket trade Wednesday, after the railroad operator cut its 2017 profit growth and operating ratio outlook. In a presentation at the Cowen & Co. Global Transportation Conference, Chief Executive Hunter Harrison said EPS growth is now expected to be in the range of 20% to 25%, compared with previous guidance of "around" 25%. The operating ratio outlook was revised to "around the high end of the mid-60s" from previous guidance of mid-60s. "The railroad is now returning to a normal operating rhythm, and our performance metrics are improving," CEO Harrison said. "Fluidity in our terminals largely has been restored and we are appropriately resourced to continue making progress." The stock had slumped 9.2% over the past three months, while the Dow Jones Transportation Average has slipped 0.1% and the S&P 500 has gained 1.2%.
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