(CSX) - Since we first featured the company, seven analysts submitted upward earnings revisions for this year while five followed suit for next year

CSX Corporation (CSX), a stock that we first featured on Mar 29, 2006, has continued its winning ways. The company met or topped the Street's estimates in nine of the past 10 quarters. Earnings per share are projected to grow 14.1% over the next 3-5 years. Analysts' estimates have been trending higher. The company is currently yielding 0.78% and has a five-year average dividend yield of 1.3%. Full Analysis CSX Corporation, through its subsidiaries, provides rail, intermodal and rail-to-truck transload services. The company's principal operating company, CSX Transportation Inc., operates the largest railroad in the eastern United States. CSX was first presented as a Growth & Income pick on Mar 29, 2006, and at that time the company was a Zacks #2 Rank (buy). Since that time the company elevated its status to a Zacks #1 Rank (strong buy). The company met or exceeded analysts' earnings estimates in nine of the past 10 quarters. Earnings per share grew 19.0% over the past five years and are forecasted to grow 14.1% over the next 3-5 years. On Apr 18, 2006, CSX reported first-quarter profits of $245 million, or $1.06 per share. With the Street expecting 87 cents, the company surprised to the upside by 21.8%. CSX posted earnings per share of 68 cents in the prior-year period. Revenues rose 10.4% to $2.33 billion-a new record for the company. Furthermore, operating income of $487 million also marked a new record. Since we first featured the company, seven analysts submitted upward earnings revisions for this year while five followed suit for next year. Five analysts revised their estimates upward for this quarter and next quarter. The consensus estimates for this quarter and next quarter increased 10.1% and 17.4%, respectively, over the past 60 days. Profit forecasts for full years 2006 and 2007 rose 13.6% and 14.8%, respectively, over the same time period. On May 3, 2006, the Board of Directors at CSX approved a quarterly dividend of 13 cents per common share of stock. The company has a current dividend yield of 0.78% and a five-year average dividend yield of 1.3%. CSX's return on equity of 11% is in line with the industry average. CSX's capacity expansion plans to further enable service improvement and volume growth in attractive corridors of the Northeast and Southeast markets remain on schedule. The company stated that approximately one third of the projects are underway and will be finished this year, with the balance to be completed in 2007. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Blog Home