(The Associated Press circulated the following on April 16.)
NEW YORK — CSX Corp. led a railroad sector rally Wednesday, as investors applauded the company’s better-than-expected first-quarter report and sent shares to an all-time high.
After the closing bell Tuesday, the Jacksonville, Fla.-based company reported first-quarter earnings that beat Wall Street’s expectations, and said it expects to hit the high end of its full-year guidance.
“It seems CSX has logged another impressive quarter, despite stiff headwinds from the soft economy & higher fuel prices,” Longbow Research analyst Lee Klaskow said in a client note.
Klaskow kept his “Neutral” rating on the stock and maintained his earnings estimates.
Lehman Brothers analyst Gary Chase predicted CSX will continue to offset impacts from slowing housing and automotive markets with strong pricing through the second quarter.
He said overall volumes at the rail should slip slightly in the third quarter, but then rebound in the final quarter of this year. He raised his full-year earnings forecast.
Chase said he expects the rest of the U.S. rails to generally beat the average estimates of Wall Street analysts as they report first-quarter results.
In afternoon trading, shares of CSX gained $2.48, or 4.3 percent, to $60.26. The stock hit an all-time high of $61.16 earlier in the session. The previous high was $58.91.
Fellow eastern rail Norfolk Southern Corp. jumped $2.72, or 4.7 percent, to $60.35, after hitting an all-time high of $60.45 earlier in the session. Shares had topped out at $59.77 previously.
Western rail Burlington Northern Santa Fe Corp. shot up $4.81, or 5.1 percent, to $99.44, after hitting a record high of $99.61 earlier. The stock’s previous all-time high was $97.
Union Pacific Corp. flirted with an all-time high of $137.56, rising $5.72, or 4.4 percent, to $136.60.
Canadian National Railway Co. surged $2.50, or 5.1 percent, to $51.28. Shares have ranged between $41.89 and $58.49 in the past 12 months.
Canadian Pacific Railway Ltd. gained $3.60, or 5.6 percent, to $67.62. The stock has traded between $55.37 and $90.15 in the past year.