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CSX Q4 Earnings Surpass Estimates, Revenues Fall 1.3% Y/Y

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CSX Corporation’s (CSX - Free Report) fourth-quarter 2023 earnings per share (EPS) of 45 cents beat the Zacks Consensus Estimate of 44 cents. However, the bottom line declined 8.2% year over year.

Total revenues of $3,680 million surpassed the Zacks Consensus Estimate of $3,637.8 million. The top line decreased 1.3% year over year due to lower intermodal storage revenues, reduced fuel surcharge, the effect of lower global benchmark coal prices and a decline in trucking revenues. These factors offset the effects of higher merchandise yields and coal volume growth.

Fourth-quarter operating income fell 10% to $1.32 billion. The operating ratio (operating expenses as a percentage of revenues) rose to 64.1% from 60.9% in the prior-year quarter, with total expenses decreasing 4% year over year.

Segmental Performances

Merchandise revenues improved 5% year over year to $2,182 million in the reported quarter. The metric has surged 4.9% (lower than reported) as per our estimate. Merchandise volumes grew 3% to $648 million. Segmental revenue per unit increased 3%.

Intermodal revenues fell 4% year over year to $552 million. The metric has fallen 18% (wider than reported) as per our estimate. Segmental revenue per unit decreased 4%.

CSX Corporation Price, Consensus and EPS Surprise

CSX Corporation Price, Consensus and EPS Surprise

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

Coal revenues inched down 1% year over year to $620 million in the reported quarter. The metric has fallen 1.5% (wider than reported) as per our estimate. Coal volumes increased 3%. Segmental revenue per unit fell 4%.

Trucking revenues totaled $204 million, down 10% year over year. The metric has fallen 9.1% (narrower than reported) as per our estimate.

Other revenues plunged 47% to $122 million in the reported quarter.  

Liquidity and Buyback

CSX exited fourth-quarter 2023 with cash and cash equivalents of $1,353 million compared with $1,958 million at the end of fourth-quarter 2022. Long-term debt totaled $17,975 million compared with $17,896 million at the end of fourth-quarter 2022.

As of Dec 31, 2023, CSX rewarded its shareholders through buybacks worth $18 million.

Currently, CSX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Transportation Companies

J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2023 earnings of $1.47 per share missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.

JBHT’s total operating revenues of $3,303.70 million outshined the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, dipped 6% year over year.

Delta Air Lines (DAL - Free Report) reported fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.

Revenues of $14,223 million outpaced the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
 


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