CSX Corp (CSX) Q3 2023 Earnings: Operating Income Drops to $1.3 Billion
CSX Corp (NASDAQ:CSX) reports Q3 2023 operating income of $1.3 billion, a decrease from $1.58 billion in the prior year period.
Net earnings stand at $846 million, or $0.42 per diluted share, compared to $1.11 billion, or $0.52 per diluted share, in the same period last year.
Revenue for the quarter totaled $3.57 billion, marking an 8% decline year-over-year.
Diluted EPS of $0.42 decreased 19% from $0.52 in the prior year.
Released on October 19, 2023, CSX Corp (NASDAQ:CSX)'s third quarter 2023 earnings report shows a decline in operating income and net earnings compared to the same period last year. Despite the challenges, the company's merchandise business remained solid, and coal operations delivered strong volume growth.
Financial Performance and Challenges
CSX Corp (NASDAQ:CSX)'s operating income for Q3 2023 was $1.30 billion, a decrease from $1.58 billion in the prior year period. Net earnings were $846 million, or $0.42 per diluted share, compared to $1.11 billion, or $0.52 per diluted share, in the same period last year. The company attributed the decline to lower fuel prices, reduced intermodal storage revenue, a decrease in export coal benchmark prices, and a decrease in intermodal volumes.
Revenue and Operating Income
Revenue for the quarter totaled $3.57 billion, marking an 8% decline year-over-year. This was primarily due to the effects of lower fuel prices, reduced intermodal storage revenue, a decline in export coal benchmark prices, and a decrease in intermodal volumes. These factors more than offset the effects of higher merchandise yields and coal volume growth. Operating income of $1.3 billion decreased 18% compared to the same period in 2022, with an operating ratio of 63.8%.
Earnings Per Share
Diluted earnings per share (EPS) for the quarter was $0.42, a decrease of 19% from $0.52 in the prior year. This includes negative impacts of approximately $350 million related to net fuel, storage revenue, and coal prices, partially offset by the favorable impact of $42 million due to out-of-period labor and fringe expenses incurred in the prior year.
Despite the mixed markets, CSX Corp (NASDAQ:CSX) remains resilient due to its reliable customer service. The company's merchandise business remained solid, and its coal operations delivered strong volume growth. As the year-end approaches, the company is encouraged by improving sequential trends in some of its key end markets.
For more detailed financial information, please visit the companys website at http://investors.csx.com.
This article first appeared on GuruFocus.
