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Railway company CSX misses out on revenue estimates on sluggish coal volumes

U.S. railroad operator CSX reported thirdquarter revenue below Wall Street estimates on Wednesday, as lower coal volumes balance out take advantage of stronger pricing, sending its shares down 3.4% in after the bell trade.

Domestic coal demand has actually been obstructed by a consumer shift to cheaper gas stockpiles for energy, while unfavorable weather and work blockages at Canadian railroads positioned numerous operational challenges.

The company also said coal demand will continue to stay stressed in the short term due to slow performance in the U.S. steel and commercial sectors.

CSX's operating margin, a keenly watched metric, was 37.4% for the quarter, representing a 180 basis-point improvement from a year back.

The Jacksonville, Florida-based business reported an earnings of 46 cents per share for the quarter through September. Experts' were anticipating an earnings of 48 cents per share, according to data put together by LSEG.

It reported earnings of $3.62 billion in the third quarter, up 1% from a year back, compared to experts' average quote of $3.67 billion.

(source: Reuters)