We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CSX Surpasses Q3 Earnings & Revenue Estimates, Shares Gain
Read MoreHide Full Article
CSX Corporation’s (CSX - Free Report) third-quarter 2021 earnings of 43 cents per share surpassed the Zacks Consensus Estimate of 38 cents. The bottom line surged 34.4% year over year owing to higher revenues.
Total revenues of $3,292 million outperformed the Zacks Consensus Estimate of $3030.9 million. The top line jumped 24.3% year over year owing to growth across all its businesses and revenues from Quality Carriers, which the company acquired in July. Following this better-than-expected third-quarter performance, despite supply chain disruptions and Delta-variant-led woes, shares of CSX gained 2.7% in after-market trading on Oct 20.
Third-quarter operating income climbed 26% to $1,436 million. Operating ratio (operating expenses as a percentage of revenues) improved to 56.4% from 56.9% in the prior-year quarter despite operating expenses increasing 23% year over year. With respect to this metric, lower the value, the better.
CSX continues to expect double-digit revenue growth (excluding benefits from Quality Carriers transaction) in 2021. Capital expenditures are still anticipated in the band of $1.7 billion-$1.8 billion for 2021.
Merchandise revenues climbed 6% year over year to $1,881 million in the quarter under review. However, merchandise volumes dipped 2% from the year-ago period.
Coal revenues ascended 39% year over year to $460 million in the reported quarter. Coal volumes rose 16% with increase in both domestic and export coal volumes.
Intermodal revenues augmented 14% year over year to $509 million. Volumes increased 4% due to higher international shipments, thanks to strong demand, inventory replenishments and growth in rail volumes from east coast ports.
Other revenues jumped 81% to $538 million in the reported quarter.
Effective from third-quarter 2021, CSX introduced a new segment — Trucking — which comprises of the operations of Quality Carriers. Revenues from the segment totaled $200 million.
Liquidity & Share Buyback
This Zacks Rank #3 (Hold) company exited the third quarter with cash and cash equivalents of $2,179 million compared with $3,129 million at the end of December 2020. Long-term debt totaled $16,182 million compared with $16,304 million at 2020-end. As of Sep 30, 2021, net cash provided by operating activities was $3,819 million compared with $3,128 million in the year-earlier period.
As of Sep 30, 2021, CSX repurchased 74 million shares for $2,316 million.
Sectorial Snapshot
Within the broader Transportation sector, Delta Air Lines (DAL - Free Report) , J.B. Hunt Transport Services (JBHT - Free Report) and Kansas City Southern recently reported third-quarter 2021 results.
Delta, carrying a Zacks Rank #4 (Sell), reported third-quarter earnings (excluding $1.59 from non-recurring items) of 30 cents per share, outpacing the Zacks Consensus Estimate of 15 cents. Revenues of $9,154 million also beat Zacks Consensus Estimate of $8,370.6 million.
J.B. Hunt, carrying a Zacks Rank #2 (Buy), reported third-quarter earnings of $1.88 per share, surpassing the Zacks Consensus Estimate of $1.77. Total operating revenues of $3144.8 million outperformed the Zacks Consensus Estimate of $3002.1 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kansas City Southern, carrying a Zacks Rank #5 (Strong Sell), reported third-quarter earnings (excluding 31 cents from non-recurring items) of $2.02 per share, missing the Zacks Consensus Estimate of $2.07. Quarterly revenues of $744 million, however, surpassed the Zacks Consensus Estimate of $725.9 million.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CSX Surpasses Q3 Earnings & Revenue Estimates, Shares Gain
CSX Corporation’s (CSX - Free Report) third-quarter 2021 earnings of 43 cents per share surpassed the Zacks Consensus Estimate of 38 cents. The bottom line surged 34.4% year over year owing to higher revenues.
Total revenues of $3,292 million outperformed the Zacks Consensus Estimate of $3030.9 million. The top line jumped 24.3% year over year owing to growth across all its businesses and revenues from Quality Carriers, which the company acquired in July. Following this better-than-expected third-quarter performance, despite supply chain disruptions and Delta-variant-led woes, shares of CSX gained 2.7% in after-market trading on Oct 20.
Third-quarter operating income climbed 26% to $1,436 million. Operating ratio (operating expenses as a percentage of revenues) improved to 56.4% from 56.9% in the prior-year quarter despite operating expenses increasing 23% year over year. With respect to this metric, lower the value, the better.
CSX continues to expect double-digit revenue growth (excluding benefits from Quality Carriers transaction) in 2021. Capital expenditures are still anticipated in the band of $1.7 billion-$1.8 billion for 2021.
CSX Corporation Price, Consensus and EPS Surprise
CSX Corporation price-consensus-eps-surprise-chart | CSX Corporation Quote
Segmental Performance
Merchandise revenues climbed 6% year over year to $1,881 million in the quarter under review. However, merchandise volumes dipped 2% from the year-ago period.
Coal revenues ascended 39% year over year to $460 million in the reported quarter. Coal volumes rose 16% with increase in both domestic and export coal volumes.
Intermodal revenues augmented 14% year over year to $509 million. Volumes increased 4% due to higher international shipments, thanks to strong demand, inventory replenishments and growth in rail volumes from east coast ports.
Other revenues jumped 81% to $538 million in the reported quarter.
Effective from third-quarter 2021, CSX introduced a new segment — Trucking — which comprises of the operations of Quality Carriers. Revenues from the segment totaled $200 million.
Liquidity & Share Buyback
This Zacks Rank #3 (Hold) company exited the third quarter with cash and cash equivalents of $2,179 million compared with $3,129 million at the end of December 2020. Long-term debt totaled $16,182 million compared with $16,304 million at 2020-end. As of Sep 30, 2021, net cash provided by operating activities was $3,819 million compared with $3,128 million in the year-earlier period.
As of Sep 30, 2021, CSX repurchased 74 million shares for $2,316 million.
Sectorial Snapshot
Within the broader Transportation sector, Delta Air Lines (DAL - Free Report) , J.B. Hunt Transport Services (JBHT - Free Report) and Kansas City Southern recently reported third-quarter 2021 results.
Delta, carrying a Zacks Rank #4 (Sell), reported third-quarter earnings (excluding $1.59 from non-recurring items) of 30 cents per share, outpacing the Zacks Consensus Estimate of 15 cents. Revenues of $9,154 million also beat Zacks Consensus Estimate of $8,370.6 million.
J.B. Hunt, carrying a Zacks Rank #2 (Buy), reported third-quarter earnings of $1.88 per share, surpassing the Zacks Consensus Estimate of $1.77. Total operating revenues of $3144.8 million outperformed the Zacks Consensus Estimate of $3002.1 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kansas City Southern, carrying a Zacks Rank #5 (Strong Sell), reported third-quarter earnings (excluding 31 cents from non-recurring items) of $2.02 per share, missing the Zacks Consensus Estimate of $2.07. Quarterly revenues of $744 million, however, surpassed the Zacks Consensus Estimate of $725.9 million.