What You Need to Know Ahead of CSX's Earnings Release

Rashmi Kumari Barchart Tue Jul 2, 2024
Industrials (names A - I) - CSX Corp_ outside logo-by Jonathan Weiss via Shutterstock

Florida-based CSX Corporation (CSX) is a premier transportation company with a robust network of rail services covering approximately 20,000 route miles across 26 states, the District of Columbia, and two Canadian provinces. CSX is valued at $65.39 billion by market cap and offers rail-based transportation services, including traditional rail service and the transport of intermodal containers and trailers. The company is scheduled to report its fiscal second-quarter earnings for 2024 on Thursday, July 18.

Ahead of the event, analysts expect CSX to report a profit of $0.48 per share, down 2% from $0.49 per share in the year-ago quarter. In the last four quarters, the company has matched Wall Street’s bottom-line estimates in two and surpassed in the other two.

Its adjusted earnings of $0.46 per share for the last reported quarter beat the consensus estimate by 2.2%. CSX Q1 earnings were supported by effective merchandise pricing and higher intermodal and coal volumes despite a year-over-year decline driven by lower fuel surcharges and reduced export coal prices.

For fiscal 2024, analysts expect CSX to report EPS of $1.96, up 6% from $1.85 in fiscal 2023. Fiscal 2025 EPS is expected to grow 11.2% year over year to $2.18.

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CSX stock is down 3.1% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 14.8% returns. The stock has also lagged behind the Industrial Select Sector SPDR Fund’s (XLI) 5.8% returns over the same time frame.

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Despite CSX's Q1 earnings beat, its shares declined nearly 2% on April 17. This drop was driven by concerns over the closure of a vital coal export port in Baltimore following a bridge collapse. The closure is expected to result in monthly revenue losses between $25 million and $30 million for CSX, significantly impacting the Q2 earnings.

However, the consensus opinion on CSX stock is bullish, with an overall “Strong Buy” rating. Out of 21 analysts covering the stock, 15 advise a “Strong Buy” rating, one recommend a “Moderate Buy,” and the remaining five analysts suggest a “Hold.” The average analyst price target for CSX is $38.72, indicating a potential upside of 15.3% from the current levels. 



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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.