|Bid||79.40 x 800|
|Ask||79.60 x 1300|
|Day's Range||79.15 - 79.91|
|52 Week Range||63.97 - 80.73|
|Beta (5Y Monthly)||1.20|
|PE Ratio (TTM)||19.09|
|Earnings Date||Apr 13, 2020 - Apr 19, 2020|
|Forward Dividend & Yield||0.96 (1.20%)|
|Ex-Dividend Date||Nov 26, 2019|
|1y Target Est||78.62|
CSX Corp. (CSX) today announced that the Company’s board of directors has authorized an 8% increase in its quarterly dividend, from $0.24 to $0.26 per share. The new $0.26 quarterly dividend is payable March 13, 2020, to shareholders of record at the close of business Feb. 28, 2020. CSX, based in Jacksonville, Florida, is a premier transportation company.
JACKSONVILLE, Fla., Feb. 12, 2020 -- CSX Corp. (NASDAQ: CSX) executive vice president, Sales & Marketing, Mark Wallace, will address the Citi Global Industrials Conference.
(Bloomberg Opinion) -- Boeing deserves blame for many things, but dragging U.S. economic growth below 3% isn’t one of them. U.S. Treasury Secretary Steven Mnuchin told Fox Business on Thursday that Boeing Co. is a big reason the U.S. won’t see the 3% expansion in gross domestic product that the Trump administration had been predicting for 2020. The Max crisis will shave 50 basis points or more off of GDP this year, Mnuchin said.Boeing is the largest U.S. exporter, and a production halt for its grounded 737 Max that took effect in January will undoubtedly be a drag on growth, particularly in the first quarter, and economists have said as much. Federal Aviation Administration chief Steve Dickson said Thursday that Boeing had discovered yet another new software issue on the Max in the latest reminder that the jet’s return remains highly fluid and that the current best estimate for a mid-2020 reintroduction may be realistic rather than conservative.(1) But to believe Mnuchin’s statement, you have to also believe that there was ever a real shot of 3% growth this year. Most economists would disagree.The median forecast of economists surveyed by Bloomberg is for 1.8% U.S. GDP growth this year. That number hasn’t been above 2% since May 2018, almost six month before the first Boeing Max jet crashed off the coast of Indonesia. The Max wasn’t grounded globally until five months after that. Even the most optimistic of the economists surveyed by Bloomberg haven’t called for 2020 GDP growth of 3%-plus since around last March, and there was little indication then that the Max crisis would drag out as long as it did or be as painful for the economy as it will end up being. Boeing initially said it would have all necessary paperwork in to the FAA by late March and didn’t signal it was even thinking about taking the drastic step of shutting down production until July. For the record, the median forecast for 2021 GDP, when Boeing Max production should be ramping back up, is 1.9%. It feels like Boeing is a convenient scapegoat for an administration that doesn’t care to admit its trade war with China dragged the manufacturing sector into a mild recession last year and that expectations for a swift recovery off of the eventual ceasefire signed in January were overblown. Even after the Max production halt was announced, White House economic adviser Larry Kudlow told CNBC Jan. 21 that U.S. GDP growth would get to 3% this year. In reality, plenty of industrial companies that have almost nothing to do with Boeing have been downbeat about their growth prospects in the coming year, calling for a still sluggish first half and a second-half recovery that many analysts expect to be relatively muted. “It took industrial activity a while to cool off and it will take a while to heat back up,” Jim Foote, CEO of railroad CSX Corp., said on the company’s earnings call last month. He didn’t mention the Max as a factor. Emerson Electric Co. and 3M Co. both announced fresh restructuring pushes to counter what remains a lackluster economic environment; neither of those companies are major suppliers to Boeing. The trade ceasefire agreed to in January will result in some rollback of tariffs: China said Thursday it will cut levies on some $75 billion of American imports later this month, while the U.S. will cut tariffs on about $120 billion of more consumer-facing goods. But the initial tariffs placed by the U.S. on some $250 billion of mostly manufacturing-related products from China remain in place. Meanwhile, China has been wishy-washy about how firm the purchasing commitments agreed to in the trade deal actually are, with caveats including market demand, quality and safety standards and, reportedly, the impact of the burgeoning coronavirus crisis. The U.S. economy likely isn’t going to grow at a 3% rate in 2020. But you can’t lose something you never had.(1) This particular problem has to do with an alert for the so-called trim system that moves the plane's nose up and down. It's not clear how much of a delay, if any, will result from this issue and Dickson also indicated a certification flight could occur within weeks.To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
A long-awaited expansion of the Howard Street Tunnel could be completed within five years if the Maryland General Assembly approves funding included in Gov. Larry Hogan's budget proposal. Brad Smith, general manager of strategic initiatives for the Maryland Port Administration, provided an update on the project to members of the Maryland Port Commission on Tuesday. Reconstruction of the 125-year-old tunnel would enable double-stacked container trains to travel to and from the booming Port of Baltimore, allowing it to reach its full growth potential.
(Bloomberg Opinion) -- The stock market’s blind optimism is colliding with industrial CEOs’ realism. Caterpillar Inc. and Honeywell International Inc. rounded out a busy week of earnings for the manufacturing sector on Friday, with both companies pointing to a continuing slide in growth in 2020 that flies in the face of expectations for a swift rebound following the signing of the U.S.-China trade deal.“We expect continued global uncertainty” in 2020, Caterpillar CEO Jim Umpleby said in a statement. That will push demand among end-users of its equipment down as much as 9% and encourage dealers to continue chipping away at existing inventory stockpiles rather than replenish them. The company predicted a decline in residential and non-residential construction markets in North America and continued weakness in oil and gas, offset somewhat by a pickup in mining equipment, calls that have wide-reaching implications for much of the industrial sector. Sales in China may decline as much as 5%, Chief Financial Officer Andrew Bonfield told Bloomberg News. Honeywell’s earnings guidance was in line with analysts’ estimates, but the range was fairly wide for the company, with a 40-cent swing between the best and worst case. Honeywell is “remaining cautious” on the macroeconomic outlook and the risks to its businesses that are among the first to reflect changes in activity. It warned sales may be flat in 2020 after backing out the impact of M&A and currency swings.Honeywell has a history of being conservative, but you’ve heard comments like this from a variety of industrial CEOs over the past few weeks, including CSX Corp.’s Jim Foote, W.W. Grainger Inc.’s DG Macpherson, DuPont de Nemours Inc.’s Marc Doyle and 3M Co.’s Mike Roman. Most are expecting the growth environment to remain lackluster – and for some markets, to get a bit worse – in the first half of the year before improving in the back end. But for many companies, that “improvement” has more to do with easier comparisons than any true demand spike. We’ve also seen this movie before, and forecasts for a back-end-weighted recovery rarely play out as hoped. Heading into the year, CEOs listed the risk of a recession as their top concern for 2020, according to a global Conference Board survey. While the trade deal improved sentiment, corporate profits need to pick back up to drive increased spending, note Bloomberg Economists Andrew Husby and Yelena Shulyatyeva. There are a variety of complicating factors on the horizon, including the U.S. presidential election and potentially the ramifications of the burgeoning coronavirus epidemic. And don’t forget, U.S. tariffs remain in place on some $360 billion of Chinese goods.For now, business investment remains muted, with orders for non-military equipment falling 0.9% in December, excluding aircraft, according to data from the Commerce Department released this week. Arguably, one benefit of elevated stock prices is that buybacks are untenable and that may drive more CEOs to put their money to work on capital investments once the uncertainty clears. Honeywell plans to do both, buying back a minimum of 1% of its shares and spending as much much as $150 million on capital expenditures in 2020. But for industrial companies as a group, earnings gains appear to rely more heavily on continued cost-cutting and productivity improvements rather than true fundamental growth.Caterpillar, which is currently predicting a second straight year-over-year decline in profit, said Friday it has a $200 million placeholder for strategic restructuring and is “prepared to respond quickly to any positive or negative changes in customer demand.” There has also been a troubling increase in below-the-line benefits and earnings adjustments, even at the typically clean Honeywell. Below-the-line items are expected to be as much as a $250 million benefit in 2020, compared with a $57 million drag in 2019, the company said. This impacts perceived quality, notes Gordon Haskett analyst John Inch.And yet investors seem only mildly concerned. After initially sliding as much as 3.2%, Caterpillar shares were at times little changed and were down only about 1.5% as of mid-morning. Expectations were higher at Honeywell and that stock was down about 2%, but it’s still within spitting distance of an all-time high hit earlier this month. Investors may have the luxury of being more optimistic than CEOs, but I’d listen to the guys who have to make the actual decisions when it comes to hiring and spending. And those guys (yes, they’re all men) are still waving the yellow flag of caution. To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The simple overarching truth about North America railroad operator CSX (NYSE:CSX) is that, as goes the U.S. and global economies, so goes CSX stock.Source: Jonathan Weiss / Shutterstock.com When the global economy was rebounding from the 2008-09 Financial Crisis, CSX roared from $10 in 2010, to $25 by mid-2011. When the global economy started to flat-line in late 2011 amid escalating federal debt concerns, CSX dropped to $20. Over the next several years, the global economy regained its footing.By mid-2015, CSX stock had soared to $40. Then, the economy slowed again in 2015/16 amid multiple geopolitical and economic risks (a slowdown in China, a debt crisis in Greece, Brexit, the devaluation of the Yuan, etc). CSX stock fell back to $20 by early 2016.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLather, rinse, repeat over the past four years. An economic upturn from 2016 through 2018 thanks to tax cuts pushed CSX stock up near $80. An economic slowdown in 2019, thanks to rising trade tensions, has caused CSX stock to trade in a sideways choppy fashion ever since. * 7 Under-the-Radar European Stocks to Buy for 2020 Long story short, history shows that as goes the economy, so goes CSX stock.Fortunately for bulls, the economy is in the early innings of yet another upswing. This economic upswing will provide sufficient firepower to drive CSX stock to new all-time highs in 2020. The Economy Is an UpswingLooking at the big picture, the U.S. and global economies are in the early innings of yet another multi-quarter upswing. This upswing has mostly to do with two things.First, what were rising U.S.-China trade tensions in 2019, are now easing trade tensions in 2020. This easing will continue for the foreseeable future since the U.S. doesn't want to rock the boat ahead of the 2020 U.S. Presidential Election and China doesn't really have the resources to rock the boat amid the Wuhan coronavirus outbreak.Consequently, over the next several quarters, U.S.-China trade tensions will meaningfully ease, stability will be injected back into the global geopolitical landscape, corporations will re-up investment and spend, and the global economy will pick up steam.Second, monetary policy across the globe remains supportive of sustained economic expansion. That is, rates everywhere remain at or near record lows, and central banks appear committed to keeping rates low for the foreseeable future. At the same time, the U.S. Federal Reserve, the European Central Bank, and the Bank of Japan are all injecting additional stimulus through significant asset purchases. Even further, the People's Bank of China just dramatically expanded bank lending capacity.Alongside easing trade tensions, these continued favorable monetary conditions will spark a multi-quarter recovery in the global economy.Sure, there are risks out there. See the coronavirus outbreak in China. See tensions in the Middle East. But, such risks are either ephemeral (disease outbreaks historically are contained to small areas and last just a few months, before disappearing for good) or overstated (Iran doesn't have the resources to provide a meaningful threat to the U.S. at the moment).Net net, the economy is going to pick up steam in 2020, and that's great news for CSX stock. CSX Can Power to New HighsSource: Chart by Luke Lango At the risk of sounding like a broken record, let me repeat this one more time for emphasis purposes. As goes the U.S. and global economies, so goes CSX stock.See the attached chart, which graphs the OECD's Composite Leading Indicator (CLI) data for the U.S. and the world, next to CSX stock price, over the past decade. There's a clear correlation.When U.S. and global CLI data swings higher, so does CSX stock. When U.S. and global CLI data swings lower, CSX stock struggles for gains. Importantly, this correlation makes complete sense, because the better the economy is doing, the more companies are pushing goods across North America, and the more demand there is for CSX's rail services to transport those goods.As we've already discussed, the U.S. and global economies will pick up steam in 2020. Indeed, they already are. For the first time since late 2017, U.S. and global CLI data are rising, not falling, month-over-month. Such reversals usually aren't short-lived. They last for several quarters, adding further support to the idea that the economy is in the first few innings of a multi-quarter upswing.Against that backdrop, CSX should rally as it normally has. Valuation is a slight problem. At 18-times forward earnings, there isn't much room for multiple expansion (the five-year-average forward earnings multiple is 17). But, there is room for CSX to deliver better-than-expected numbers throughout 2020 and for analysts to up their forward profit estimates, the sum of which should provide enough firepower to drive CSX to new highs. Bottom Line on CSX StockAs goes the economy, so goes CSX stock. The economy is going to improve over the next few quarters. As it does, CSX will push to new highs.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Under-the-Radar European Stocks to Buy for 2020 * 7 Industries Using AI to Benefit Shareholders Around the World * 5 Chinese Stocks to Buy When Coronavirus Fears Fade The post Look for New Highs From CSX Stock as the Economy Heats Up appeared first on InvestorPlace.
The biggest railroad play is expected to report on Thursday that it suffered a 10% drop in freight volumes in the quarter ended in December and lower earnings.
The company has greatly improved its operating ratio, but the railroad faces several headwinds, including revenue decline Continue reading...
Investors in CSX Corporation (NASDAQ:CSX) had a good week, as its shares rose 4.1% to close at US$76.40 following the...
Amtrak is reportedly pitching a new route between Atlanta and Nashville. Officials with the nationwide passenger rail service proposed the new connection to Tennessee lawmakers earlier this week during a meeting of the House of Transportation Committee, according to WTVF.
Shares of Expeditors International of Washington Inc. tumbled 5.8% in morning trading Friday, pulling back from the previous session's record close, after the transportation and shipping company warned of a fourth-quarter profit and revenue shortfall. The company said it expects earnings per share of 78 cents to 81 cents, well below the FactSet consensus of 94 cents. Chief Executive Jeffrey Musser said he believed disappointing earnings and revenue performance was a results of slowing global economies, trade disputes and changing supply-and-demand dynamics. "We've seen impacts throughout the year from these market conditions, but the pace at which these changes occurred accelerated dramatically in the fourth quarter," Musser said. Expeditors's warning comes after disappointing results from fellow Dow Jones Transportation Average components CSX Corp. and Kansas City Southern. The Dow transports fell 86 points, or 0.8%, while the Dow Jones Industrial Average gained 37 points, or 0.1%.
CSX (CSX) delivered earnings and revenue surprises of 2.06% and -1.14%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
CSX Corp. shares slipped in the extended session Thursday after the railroad operator's earnings topped Wall Street estimates but its revenue didn't. CSX shares declined 4% after hours, following a 2.3% rise in the regular session to close at $76.74. The company reported fourth-quarter net income of $771 million, or 99 cents a share, compared with $843 million, or $1.01 a share, in the year-ago period. Revenue declined to $2.89 billion from $3.14 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 96 cents a share on revenue of $2.92 billion.
CSX Corporation (CSX) today announced fourth quarter 2019 net earnings of $771 million, or $0.99 per share, versus $843 million, or $1.01 per share in the same period last year. CSX’s operating ratio set a company fourth quarter record of 60.0 percent, compared with 60.3 percent in the prior year. For the full year 2019, CSX generated net earnings of $3.33 billion, or $4.17 per share, versus $3.31 billion, or $3.84 per share in 2018, an increase of 1% and 9%, respectively.