(Reuters) – U.S. railroad CSX Inc (NASDAQ:CSX) narrowly beat second-quarter profit estimates on Monday, helped by higher freight volumes and strong rates, sending its shares up 5% after the open.
Improving intermodal volumes, or goods moved across two or more modes of transportation, has helped railroads post profits along with higher-than-inflation pricing, even as the freight industry as a whole continues to face a slowdown.
CSX’s intermodal revenue was $506 million in the reported quarter, up 3% from a year ago.
The Jacksonville, Florida-based company reported revenue of $3.7 billion in the second quarter, in line with analysts’ estimates.
The company reported a profit of 49 cents per share, beating analysts’ estimates of 48 cents per share, according to data from the London Stock Exchange.
Operating margin was 39.1% during the quarter, down 50 basis points compared to the prior year.
CSX’s competitor on the East Coast Norfolk Southern (NYSE:) also reported higher-than-estimated second-quarter earnings last month, helped by higher prices.