CSX Corp. NYSE: CSX koleje wschód USA

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Investing.com -- CSX reported Thursday first-quarter results that beat analysts' forecasts, driven by "solid" climb in volume growth and higher prices.

CSX Corporation (NASDAQ:CSX) shares gained 1% in after-hours trade following the report.

CSX announced earnings per share of $0.48 on revenue of $3.71 billion. Analysts polled by Investing.com anticipated EPS of $0.43 on revenue of $3.59B.

Revenue for the first quarter rose 9% over the prior year, underpinned by "solid volume growth in merchandise and coal, higher fuel surcharge, and pricing gains," the company said.

Looking ahead to fiscal 2023, the railroad company said it expected low single digit revenue ton-mile growth for the full year, and capex expected to be about $2.3 billion.

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CSX (NASDAQ:CSX) shares fell about 5% in pre-open Friday despite the company’s solid Q2 results.

EPS came in at $0.49, in line with the consensus estimate, while revenue fell 3% year-over-year to $3.7 billion (vs. consensus of $3.73B).

The company blamed the revenue weakness on lower fuel prices, reduced supplemental revenue, a decline in export coal benchmark prices, and a decrease in intermodal volumes more than offset the effects of volume growth in coal and merchandise and solid gains in merchandise pricing.

“The ONE CSX team continued to build momentum this quarter as our merchandise and coal businesses continued to demonstrate significant volume gains,” said CEO Joe Hinrichs.

The company provided a 2023 guidance update, expecting low single-digit revenue ton-mile growth for the full year, driven by merchandise and export coal.

Bernstein analysts said that buy-side expectations were too high while CSX is a crowded name, hence a bearish market reaction to Q2 results.

"The stock seems crowded at present — with the short interest coming way down into the print — and there is more bad news coming on the pricing front in 3Q which leaves us where we have been on the name: patiently waiting for the worst of the bad news to be behind us," they said in a note.

Goldman Sachs analysts added:

"We remain Buy rated on CSX as we still think a favorable volume inflection into the 4Q/2024 can further the recent trends in margin improvement, potentially warranting share price re-acceleration against recently low historical valuation levels."

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CSX (NASDAQ:CSX) fell nearly 2% after RBC downgraded its rating on the railroad company to Sector Perform from Underperform, citing coal volume headwinds.

Coal, which makes up nearly a fifth of revenues at CSX, is expected to fall by 20% in 2024, according to a recent forecast from the Energy Information Administration. That is likely to lead to downward earnings revisions, RBC said.

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CSX Corporation (NASDAQ:CSX) reported its Q3 2023 results in its recent earnings conference call, highlighting steady progress with its ONE CSX initiatives and the introduction of Mike Cory as the new Chief Operating Officer. The company reported revenues of $3.6 billion, down 8% from the previous year, with operating income at $1.3 billion, down from $1.6 billion. Earnings per share were reported at $0.42, down from $0.52. According to InvestingPro data, the company has a market cap of $61.27 billion and a P/E ratio of 15.39.

Key takeaways from the call include:

CSX moved over 1.5 million carloads in Q3, with flat performance in merchandise and 9% growth in coal.
The company expects a strong rebound in the ag and food business in Q4.
CSX executives expressed confidence in their ability to manage volume growth and emphasized the importance of service and reliability.
The company expects low single-digit growth in revenue ton-miles for the full year and maintains its commitment to efficiency and cost control.
The company's capital expenditures estimate for the year remains unchanged at $2.3 billion.
During the call, CSX executives provided updates on the performance of various business segments. The infrastructure activity and healthy demand for aggregates supported strong performance in the cement and metals sectors. The chemical franchise showed signs of stabilization and improvement in domestic plastics. However, the intermodal business faced challenges, with revenue declining by 14% and total volume decreasing by 7%.

CSX executives also discussed their plans and opportunities for growth. They mentioned that they are still hiring in a few key locations and are comfortable with their current staffing levels. They also spoke about the truck conversion strategy, stating that they are early in the process but are seeing momentum and expect it to build in the coming year.

In response to questions about the company's performance and future plans, Kevin Boone, a member of the company's team, mentioned that they expect a low to mid-single digit uptick in coal yield in Q4 and Q1. Sean Pelkey added that they have a good start in terms of volume, and fuel costs should be less of a negative compared to Q3.

The company is optimistic about their performance and future growth opportunities. CSX expects an uptick in coal yield in Q4 and into Q1, with the potential for low to mid-single-digit growth depending on the mix. They anticipate better volume, less fuel headwind, and some continued cost pressure in Q4, but are aiming to improve their operating ratio and grow earnings.

According to InvestingPro Tips, the management has been aggressively buying back shares and the company yields a high return on invested capital. This indicates a strong belief in the company's future performance. Additionally, CSX has consistently increased its earnings per share and has raised its dividend for 19 consecutive years, indicating a strong commitment to its shareholders.

CSX executives also discussed the company's operations and plans for improvement. Mike Cory, who recently joined the company, emphasized the importance of identifying and reducing waste in the network. He emphasized the need for immediate visibility of waste and teaching employees how to address it. The goal is to improve efficiency and service metrics.