Wednesday, July 18, 2012

Looking At Selling CSX Corporation On The Reduction Of Stock Buybacks

CSX Corporation (CSX) has a been a mainstay stock in our Net Payout Yields model for over a year now. The company has a solid 2.5% dividend and has had a huge buyback plan that included over $1B worth of stock purchased in Q311 alone.

Earnings

After the close on Tuesday, one of the leading railroad operators reported earnings of $0.49 that slightly beat estimates of $0.47. The number also was a 7 percent year-over-year improvement even though the actual earnings amount only increased from $506M to $512M. In essence, the whole gain per share came from the reduction of diluted shares outstanding from 1,109M in Q211 to 1,043M in Q212 or a 6% drop.

Read the full article at Seeking Alpha.


Disclosure: Long CSX (for now). Please review the disclaimer page for more details. 



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