CSX Corp , the No. 3 U.S. railroad, reported a stronger-than-expected quarterly profit on Tuesday and said it believed the worst of the recession is likely behind us.

The company reported third-quarter net income from continuing operations of $293 million, or 74 cents a share, compared with $380 million, or 93 cents a share, a year earlier.

On that basis, analysts expected the company to report a profit of 71 cents a share, according to Thomson Reuters I/B/E/S.

CSX said revenue in the quarter fell 23 percent to $2.3 billion, in line with analysts' expectations.

CSX shares rose 2.3 percent in after-hours trade.

(Reporting by James B. Kelleher, editing by Matthew Lewis)