CSX Corporation (CSX)

[Timothy Smith]

CSX (CSX +0.6%) is higher despite issuing a tepid outlook, saying Q3 freight volumes are trending below the company's expectations and will remain challenging through Q4 and beyond.

CSX exec Fredrik Eliasson tells a Cowen transporation conference that the railroad's overall volume YTD is down ~2%, with both domestic coal and merchandise markets tracking slightly below the company's original Q3 expectations.

CSX now expects full-year EPS growth in the mid-single digits, vs. a previous outlook for mid- to high-single digits, citing YTD coal freight volumes down 17% Y/Y and difficulties in the coal market that are expected to continue in Q4.