Choo Choo shares slumped after the company lowered expectations – earnings expectations expectations for the coming quarter.
For the upcoming Q3/12 period, the company now expects to earn $1.18-1.25 per share.
This is down meaningfully from previous expectations of $1.63 for the quarter. Decreased coal and merchandise shipments, offset in part by growth in intermodal volumes, are together expected to reduce revenues by approximately $120 million compared with third quarter 2011. Fuel surcharge revenues are also anticipated to be approximately $80 million below the same period last year. Third-quarter 2011 fuel surcharge revenues included a favourable lag-effect of $52 million, whereas results for the current quarter are expected to be impacted by an unfavourable lag-effect in the range of $25-30 million.
Note that oil prices have rebounded this morning – attributed to the QE to infinity which also saw gold jump .