10/24/2007

Source: Yahoo! Finance

NEW YORK (AP) -- Shares of railroad operator CSX Corp. rose Wednesday after it reported third-quarter earnings that surpassed Wall Street's estimates.

The company reported adjusted earnings, which exclude various one-time gains and charges, of 67 cents per share. Wall Street had forecast 62 cents per share.

Longbow Research analyst Lee A. Klaskow attributed the higher-than-expected earnings to the company's ability to control costs in a period of poor volumes related to the overall freight market slump resulting from weakness in housing and consumer spending.

"It appears CSX has truly turned the corner in its recovery," the analyst said of the company's operations.

CSX posted losses in the first half of 2007, with year-over-year profit slipping 2 percent in the first quarter, and 17 percent in the second quarter.

Klaskow raised his full-year earnings estimate to $2.55 per share from $2.49 per share.

However, since the stock is still trading 9 percent above the rest of the sector, Klaskow maintained his "Neutral Weight" rating.

Shares of CSX rose $2.46, or 5.7 percent, to $45.29 in afternoon trading. Shares have traded between $33.50 and $51.88 in the past 52 weeks.