CSX postpones investor conference, announces share buyback
Following yesterday’s announcement of executive changes including naming Jim Foote as COO, CSX Corporation (CSX) is postponing its scheduled October 30th Investor Conference to a later date.
“Our team continues to build momentum and the addition of Jim increases my confidence in our ability to serve customers and deliver shareholder value,” said Hunter Harrison, president and CEO.
“I am more confident than ever in CSX’s ability to achieve industry leading operating and financial performance and look forward to showcasing our leadership team at a future date.”
CSX also announced the Board has authorized $1.5B in share repurchases, which builds on the $1.5B program recently completed.
“The Board’s action to expand the repurchase program demonstrates our confidence in CSX’s long term future and ability to generate substantial free cash flow,” said Harrison.
Citi analyst Christian #Wetherbee believes the “surprising” postponement of CSX’s investor day will likely prompt concerns about CEO Hunter Harrison’s health and “potential disarray in the management ranks” following the replacement of two C-level executives Wednesday.
The analyst, however, believes the company needs more time for new COO Jim Foote to get familiar with operations in order to participate in the presentation.
Wetherbee expects the shares to face downward pressure in the short term, but thinks little incremental has changed at the company. He keeps a Buy rating on CSX with a $58 price target.
CSX closed at $52.92.
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