(The Associated Press circulated the following on December 7.)
NEW YORK — A Lehman Brothers analyst on Thursday trimmed fourth-quarter estimates for Burlington Northern Santa Fe Corp. due to lower freight volumes, but said robust pricing would continue to support the industry’s earnings going forward.
Lehman’s Gary Chase drew his fourth-quarter earnings expectations on Burlington Northern down to $1.39 per share from $1.40 previously. Chase subsequently revised his full-year forecast to $4.99 per share from $5.
On average, analysts polled by Thomson Financial presently forecast a fourth-quarter profit of $1.40 per share and full-year earnings of $5 per share.
“While we have reduced our more optimistic forecasts modestly, we believe firm pricing will continue to drive good earnings and margins for the group,” Chase said in an accompanying note on the industry.
Chase retained his “Overweight” rating on Burlington Northern and a target price of $91.
Shares of Forth Worth, Texas-based Burlington Northern fell 1 cent to $76.06 in afternoon trading on the New York Stock Exchange.