The Zacks Analyst Blog Highlights: CSX, Union Pacific, Kansas City Southern, SBA Communication and Oi

 The Zacks Analyst Blog Highlights: CSX, Union Pacific, Kansas City Southern,
                           SBA Communication and Oi

PR Newswire

CHICAGO, July 17, 2013

CHICAGO, July 17, 2013 /PRNewswire/ announces the list of stocks
featured in the Analyst Blog. Every day the Zacks Equity Research analysts
discuss the latest news and events impacting stocks and the financial markets.
Stocks recently featured in the blog include CSX Corporation (NYSE:CSX-Free
Report), Union Pacific Corporation (NYSE:UNP-Free Report), Kansas City
Southern (NYSE:KSU-Free Report), SBA Communication Corp. (Nasdaq:SBAC-Free
Report) and Oi SA (NYSE:OIBR-Free Report).


Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of
the Day pick for free.

Here are highlights from Tuesday's Analyst Blog:

CSX Beats Earnings Expectations

Railroad operator CSX Corporation (NYSE:CSX-Free Report), reported earnings
after the bell, posting an EPS of $0.52 and revenues of $3.1 billion. This
was above the Zacks Consensus Estimate of $0.47, and revenue estimate of 3.0
billion. The revenues beat reversed the previous four quarter decline in
quarterly revenues. Furthermore, this is the third consecutive positive
earnings surprise (average surprise 9.01%), that CSX has posted in the past
four quarters (CSX met expectations in Q3 2012).

On a positive note, the recent recovery by the Construction and Industrial
sectors has analysts suggesting that the increased need to ship raw materials
and drilling equipment will act as a catalyst for future growth.
Simultaneously, CSX has increased spending on terminal capacity, and is
currently expanding their existing network of rail lines (specifically, the
Quebec Intermodal terminal which is scheduled to be operational in 2015);
which will enhance their ability to post strong growth levels over the long
term. Moreover, CFO Fredrick Eliasson continues to estimate growth to be
between 10%-15% thru 2015.

On the negative side, the subdued outlook of the Coal and Agriculture sectors
are still weighing negatively on CSX as a whole, and may negate the positives
of the Construction, and Industrial sectors. Also, CSX announced that 2013
EPS will remain flat for the remainder of the year.

In afterhours trading, CSX has rose $0.69, or 2.8% on mild volume, suggesting
that the street views this announcement in a positive manner. Zacks will post
a detailed report on CSX's earnings tomorrow morning. Union Pacific
Corporation (NYSE:UNP-Free Report) and Kansas City Southern (NYSE:KSU-Free
Report) report earnings on July 18, and July 19 respectfully.

Finally, CSX's Board of Directors approved a $0.15 dividend payable on
September 13 of this year (for shareholders of record on August 30).

SBA Communication to Explore Brazil

Cell phone tower operator SBA Communication Corp. (Nasdaq:SBAC-Free Report),
has entered into a definitive agreement with Brazilian telecom carrier, Oi SA
(NYSE:OIBR-Free Report), and its subsidiaries. Per the agreement, SBAC will
have exclusive rights for Oi's 2,113 towers. Growing demand for data services
by smartphone users is believed to be the primary reason for the acquisition.

SBA Communication, the third-largest tower operator in the U.S., will pay
$302.6 million to acquire the 2,000-plus tires, which is part of the fixed
wireline concession provided by the Brazilian government. The deal, subject to
customary regulatory approval, is expected to close by the end of this year.

Post the transaction, Oi will sign a long-term lease agreement with SBAC for
renting out the antenna space within the towers. Meanwhile, SBAC will maintain
and commercially operate all the towers and have the right to enter into
leasing agreements with other operators.

The tenancy ratio, which is expressed as a fraction of the total operators
sharing the tower sites by the total number of sites present, currently stands
at 1.15. Oi's1.15 tenancy ratio is below the Latin American average of 1.5,
thus allowing the tower operator to add other tenants. 

Upon completion of the deal, SBAC will have close to 20,000 tower sites with
around 3,000 sites in the biggest Latin American economy. The tower operator
expects to generate $32.4 million of revenues and $67.3 million of cash flow
in 2014 from the towers. SBAC will fund the deal from the available cash in
hand and the $770 million existing revolving credit facilities.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of
the Day pick for free.

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