CSX has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in two of the preceding four quarters and meeting twice, the average beat being 4.14%.
Let's delve into the factors that are likely to have influenced CSX's performance this earnings season.
The Zacks Consensus Estimate for CSX's first-quarter 2024 revenues is currently pegged at $3.66 billion, which indicates a 1.18% 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 and trucking volumes. Our estimates for first-quarter Coal and Trucking revenues indicate declines of 10.3% and 8.5% from the year-ago reported figures. However, estimates for coal revenues indicate a rise of 1.7% year over year.
Moreover, supply-chain disruptions, including labor and equipment shortages, are expected to have hurt CSX's quarterly performance. Rising fuel expenses have been bothering the company's bottom line. CSX's high capital expenditure is anticipated to have further impeded its bottom line. However, the company's cost-cut approach is expected to have cushioned the bottom line to some extent in the to-be-reported quarter.
What Our Model Says
Our proven model predicts an earnings beat for CSX this time. 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, which is the case here.
CSX has an Earnings ESP of +0.76% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they're reported with our
Earnings ESP Filter.
Highlights of Q4
CSX's fourth-quarter 2023 earnings per share of 45 cents beat the Zacks Consensus Estimate. However, the bottom line declined 8.2% year over year. Total revenues of $3.68 billion beat the Zacks Consensus Estimate of $3.63 billion. 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.
Other Stocks to Consider
Here are a few other stocks from the broader Zacks Transportation sector that investors may also want to consider, as our model shows that these, too, have the right combination of elements to beat on their first-quarter 2024 earnings.
UAL is scheduled to report first-quarter 2024 earnings on Apr 16. The Zacks Consensus Estimate for earnings has been revised 15.87% upward over the last 90 days. UAL has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 17.84%.
Westinghouse Air Brake Technologies (
WAB - Free Report) has an Earnings ESP of +4.98% and a Zacks Rank #3. WAB is scheduled to report first-quarter 2024 earnings on April 24.
WAB has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 6.63%.
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What Our Model Says
Our proven model predicts an earnings beat for CSX this time. 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, which is the case here.
Highlights of Q4
Other Stocks to Consider
Here are a few other stocks from the broader Zacks Transportation sector that investors may also want to consider, as our model shows that these, too, have the right combination of elements to beat on their first-quarter 2024 earnings.
UAL is scheduled to report first-quarter 2024 earnings on Apr 16. The Zacks Consensus Estimate for earnings has been revised 15.87% upward over the last 90 days. UAL has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 17.84%.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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