Solid Q4 - FY18 to be a very strong FCF year
Q4 Adj. EPS of $0.64 was comfortably ahead of both AE/consensus at $0.57/$0.56 respectively. The key driver of the beat came from cost savings, with YoY expenses down 9% (3% on a like-for-like basis). This strong cost discipline underpinned a 220bps YoY improvement in Operating Ratio, despite a material (12%) increase in fuel expense. Guidance for FY18 is for revenues to be "up slightly", with ongoing improvement in Operating Ratio, a reduced tax rate and lower capital expenditures all likely to support meaningful FCF growth.CSX provides rail-based freight transportation services. The company's principal operating subsidiary, CSX Transportation, Inc., provides a link to the transportation supply chain through its rail network, which serves centers in states east of the Mississippi River, the District of Columbia and the Canadian provinces of Ontario and Quebec. The company's CSX Intermodal Terminals, Inc. subsidiary owns and operates a system of intermodal terminals, primarily in the eastern United States and also performs drayage services (the pickup and delivery of intermodal shipments). The company's Total Distribution Services, Inc. subsidiary serves the automotive industry with distribution centers and storage locations.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
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