Jefferies Struggles To Understand Why CSX Was Off 5%

Jefferies reports that it is struggling to understand why CSX Corp. CSX was off “as much as 5% intraday on a $0.02 EPS beat.” “Quality of earnings was high, as the company upsided our operating income forecast by $0.04,” Jefferies writes. “Strength was driven by coal yields, up 15.7% YoY. 1Q was our lowest conviction quarter of the year for the rails given weather, fuel, and 1H catch-up costs. Much of our uncertainties were eased on the 1Q print.” CSX Corp. closed Wednesday at $74.03.