U.S. Markets open in 6 hrs 11 mins

CSX Q2 Earnings & Revenues Miss on Soft Intermodal Revenues

Zacks Equity Research

CSX Corporation CSX reported second-quarter 2019 earnings of $1.08 per share, missing the Zacks Consensus Estimate of $1.11. However, earnings increased 6.9% year over year. Meanwhile, total revenues of $3,061 million lagged the Zacks Consensus Estimate of $3,142.7 million and also dipped 1.3% year over year. Results were affected by disappointing performance of the intermodal segment.

The lower-than-expected results displeased investors. Consequently, the stock declined more than 6% in after-hours trading on Jul 16.

Second-quarter operating income inched up 2% year over year to $1,305 million. Operating ratio (operating expenses as a percentage of revenues) improved to 57.4% from 58.6% in the prior-year quarter with total expenses decreasing 3% from the year-ago period.

CSX Corporation Price, Consensus and EPS Surprise

 

CSX Corporation Price, Consensus and EPS Surprise

CSX Corporation price-consensus-eps-surprise-chart | CSX Corporation Quote


Segmental Performance

Merchandise revenues climbed 2% year over year to $1,944 million in the quarter under review. Also, merchandise volumes inched up 1% year over year.

Coal revenues slid 2% year over year to $557 million in the reported quarter. However, coal volumes grew 2% year over year.

Intermodal revenues declined 11% year over year to $436 million. Volumes also contracted 10% on a year-over-year basis.

Other revenues grossed $124 million, down 9% year over year.

Liquidity & Share Buyback

This Zacks Rank #4 (Sell) company exited the second quarter with cash and cash equivalents of $853 million compared with $858 million at the end of last December. Long-term debt totaled $15,522 million compared with $14,739 million at 2018 end. As of Jun 30, 2019, net cash provided by operating activities was $2,267 million compared with $2,009 million in the year-earlier period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Investors interested in the broader Transportation sector are keenly awaiting second-quarter 2019 earnings reports from key players like Union Pacific Corporation UNP, Norfolk Southern Corporation NSC and United Parcel Service UPS. While Union Pacific will report second-quarter earnings on Jul 18, Norfolk Southern and UPS will announce the same on Jul 24.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
CSX Corporation (CSX) : Free Stock Analysis Report
 
Norfolk Southern Corporation (NSC) : Free Stock Analysis Report
 
Union Pacific Corporation (UNP) : Free Stock Analysis Report
 
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research