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The Zacks Consensus Estimate for the railroad operator’s second-quarter earnings has been stable at 47 cents over the past 60 days. CSX has an impressive surprise history, with its earnings having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 6.59%.
Let’s see how things are shaping up for this earnings season.
Factors Likely to Impact CSX’s Q2 Results
Supply-chain disruptions, including labor and equipment shortages, are expected to have hurt CSX’s second-quarter performance. Akin to the first quarter, high fuel costs are likely to have dented CSX’s second-quarter bottom-line performance.
However, favorable pricing and higher fuel surcharge are likely to have bolstered the top line in the to-be-reported quarter. Owing to higher revenues, operating ratio (operating expenses as a % of revenues) is likely to have improved in the June quarter.
The Zacks Consensus Estimate for the June quarter’s operating ratio is pegged at 59, indicating an improvement from 62 reported in first-quarter 2022. A lower reading of the ratio is desirable.
Earnings Whispers
The proven Zacks model predicts an earnings beat for CSX this time around. 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, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: CSX has an Earnings ESP of +0.47%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CSX carries a Zacks Rank #3.
Highlights of Q1 Earnings
CSX’s first-quarter 2022 earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny despite the decrease in overall volumes as supply-chain issues continue to hurt results. The bottom line improved 25.81% year over year owing to increased revenues, driven by higher shipping rates. Total revenues of $3,413 million outperformed the Zacks Consensus Estimate of $3291.2 million.
Other Stocks to Consider
Here are a few other stocks worth considering from the broader Zacks Transportation sector, as our model shows that these have the right combination of elements to beat on second-quarter 2022 earnings:
Kirby has an expected earnings growth rate of 282.14% for the current year. KEX delivered a trailing four-quarter earnings surprise of 7.7%, on average.
KEX has a long-term earnings growth rate of 12%.
Southwest Airlines (LUV - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank #3. Improved air-travel demand is likely to aid LUV’s results.LUV will release results on Jul 28.
Southwest has an expected earnings growth rate of 226.05% for the current year. LUV delivered a trailing four-quarter earnings surprise of 33.5%, on average. Southwest has a long-term earnings growth rate of 6%.
Norfolk Southern Corporation (NSC - Free Report) has an Earnings ESP of +0.13% and a Zacks Rank of 3. NSC will release results on Jul 27. Improved performance of the intermodal and merchandise segments is likely to aid results.
Norfolk has an expected earnings growth rate of 14.7% for the current year. NSC delivered a trailing four-quarter earnings surprise of 5.2%, on average. NSC has a long-term earnings growth rate of 10.5%.
Image: Bigstock
Factors to Decide the Fate of CSX This Earnings Season
CSX Corporation (CSX - Free Report) is scheduled to report second-quarter 2022 results on Jul 20, after market close.
The Zacks Consensus Estimate for the railroad operator’s second-quarter earnings has been stable at 47 cents over the past 60 days. CSX has an impressive surprise history, with its earnings having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 6.59%.
Let’s see how things are shaping up for this earnings season.
Factors Likely to Impact CSX’s Q2 Results
Supply-chain disruptions, including labor and equipment shortages, are expected to have hurt CSX’s second-quarter performance. Akin to the first quarter, high fuel costs are likely to have dented CSX’s second-quarter bottom-line performance.
However, favorable pricing and higher fuel surcharge are likely to have bolstered the top line in the to-be-reported quarter. Owing to higher revenues, operating ratio (operating expenses as a % of revenues) is likely to have improved in the June quarter.
The Zacks Consensus Estimate for the June quarter’s operating ratio is pegged at 59, indicating an improvement from 62 reported in first-quarter 2022. A lower reading of the ratio is desirable.
Earnings Whispers
The proven Zacks model predicts an earnings beat for CSX this time around. 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, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: CSX has an Earnings ESP of +0.47%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CSX carries a Zacks Rank #3.
Highlights of Q1 Earnings
CSX’s first-quarter 2022 earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny despite the decrease in overall volumes as supply-chain issues continue to hurt results. The bottom line improved 25.81% year over year owing to increased revenues, driven by higher shipping rates. Total revenues of $3,413 million outperformed the Zacks Consensus Estimate of $3291.2 million.
Other Stocks to Consider
Here are a few other stocks worth considering from the broader Zacks Transportation sector, as our model shows that these have the right combination of elements to beat on second-quarter 2022 earnings:
Kirby (KEX - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank #2. KEX will release results on Jul 28. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kirby has an expected earnings growth rate of 282.14% for the current year. KEX delivered a trailing four-quarter earnings surprise of 7.7%, on average.
KEX has a long-term earnings growth rate of 12%.
Southwest Airlines (LUV - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank #3. Improved air-travel demand is likely to aid LUV’s results.LUV will release results on Jul 28.
Southwest has an expected earnings growth rate of 226.05% for the current year. LUV delivered a trailing four-quarter earnings surprise of 33.5%, on average. Southwest has a long-term earnings growth rate of 6%.
Norfolk Southern Corporation (NSC - Free Report) has an Earnings ESP of +0.13% and a Zacks Rank of 3. NSC will release results on Jul 27. Improved performance of the intermodal and merchandise segments is likely to aid results.
Norfolk has an expected earnings growth rate of 14.7% for the current year. NSC delivered a trailing four-quarter earnings surprise of 5.2%, on average. NSC has a long-term earnings growth rate of 10.5%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.