Dahlman Rose On CSX's 4Q Earnings Beat

Dahlman Rose has published a research report on CSX Corporation CSX after the company reported 4Q EPS that beat estimates and consensus. In the report, Dahlman Rose writes "CSX reported 4Q10 EPS of $1.14, vs our and street estimates of $1.05 and $1.10 respectively. The company reported revenues of $2.81 Bn, beating our and consensus estimates of $2.63 Bn and $2.67 Bn, respectively. The beat is attributable to continued improvement in volume growth, solid pricing, higher fuel surcharges, and continued operating leverage that allowed CSX to report a 70% operating ratio, which is a 490 bps improvement from 4Q09 and only a 90 bps deterioration from 3Q10 (the fourth quarter historically has a higher OR)." Dahlman Rose maintains its buy rating and $86 price target. CSX Corporation closed yesterday at $70.25.