Deutsche Bank Comments On CSX Q2 EPS

According to Deutsche Bank, CSX CSX reported Q2 EPS of $0.46, above its estimate of $0.43 and Consensus of $0.44. Deutsche Bank said that upside was driven by a combination of better-than-expected yields (with revenue/unit up 10% y/y) and margins as the company generated a 69.3% OR, which was 20bps better-than-expected. “Results were aided by a $0.01/share tax benefit, but were otherwise clean despite a challenging operating environment. CSX's Q2 results and OR goals highlight our long-term conviction in the company's operating plan and the strong railroad fundamentals. BUY.” CSX closed yesterday at $25.05.