CSX Gears Up to Report Q3 Earnings: What's in the Cards?
CSX Corporation CSX is scheduled to report third-quarter 2023 results on Oct 19, after market close.
CSX has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 6.17%.
Let’s see how things have shaped up for CSX this earnings season.
Q3 Expectations
The Zacks Consensus Estimate for CSX’sthird-quarter 2023 revenues is pegged at $3.56 billion, indicating an 8.58% decline year over year. The top line is likely to have been weighed down by reduced supplemental revenues, a decline in export coal benchmark prices and a decrease in intermodal volumes.
The Zacks Consensus Estimate for third-quarter Merchandise revenues is pegged at $2,128 million, indicating a 0.6% decline from the year-ago reported figure. The Zacks Consensus Estimate for third-quarter Intermodal revenues is pegged at $506 million, indicating a 16.2% decline from the year-ago reported figure. The Zacks Consensus Estimate for third-quarter Coal revenues is pegged at $588 million, indicating a 5.8% decline from the year-ago reported figure.
On the flip side, supply-chain disruptions, including labor and equipment shortages, are expected to have hurt CSX’s third-quarter performance. Rising fuel expenses continue to bother the company’s bottom line. CSX’s high capital expenditures may further impede its bottom line. The Zacks Consensus Estimate for CSX’s third-quarter 2023 earnings has been revised downward by 12.2% in the past 90 days.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for CSX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CSX has an Earnings ESP of -2.26% and a Zacks Rank #3.
CSX Corporation Price and EPS Surprise
CSX Corporation price-eps-surprise | CSX Corporation Quote
Highlights of Q2
CSX's second-quarter 2023 earnings per share of 49 cents matched the Zacks Consensus Estimate. However, the bottom line declined year over year.
Total revenues of $3,699 million lagged the Zacks Consensus Estimate of $3,730.6 million. The top line decreased 3% year over year due to lower fuel prices, reduced supplemental revenues, a decline in export coal benchmark prices and a decrease in intermodal volumes. These factors offset the effects of volume growth in coal and merchandise and solid gains in merchandise pricing.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on their third-quarter 2023 earnings:
Kirby Corporation KEX has an Earnings ESP of +6.52% and a Zacks Rank #2. KEX will release results on Oct 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
KEX has an expected earnings growth rate of 56.92% for third-quarter 2023. KEX delivered a trailing four-quarter earnings surprise of 8.03%, on average.
The Zacks Consensus Estimate for KEX’s third-quarter 2023 revenues is pegged at $794.60 million, indicating growth of 6.54% year over year.
Old Dominion Freight Line, Inc. (ODFL) has an Earnings ESP of +0.40% and a Zacks Rank #2. ODFL will release results on Oct 25.
The Zacks Consensus Estimate for ODFL’s third-quarter 2023 earnings has been revised upward by 1.4% in the past 90 days. ODFL delivered a trailing four-quarter earnings surprise of 3.86%, on average.
Landstar System, Inc. LSTR has an Earnings ESP of +0.06% and a Zacks Rank #3. LSTR will release results on Oct 25.
LSTR delivered a trailing four-quarter earnings surprise of 1.71%, on average. Shares of LSTR have gained 10.1% so far this year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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CSX Corporation (CSX) : Free Stock Analysis Report
Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report
Kirby Corporation (KEX) : Free Stock Analysis Report
Landstar System, Inc. (LSTR) : Free Stock Analysis Report
