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CSX Q2 Earnings & Revenues Surpass Estimates, Up Y/Y
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CSX Corporation (CSX - Free Report) ) reported better-than-expected second-quarter 2022 results, wherein both the earnings and revenues outperformed the Zacks Consensus Estimate.
Quarterly earnings of 50 cents per share (excluding 4 cents from non-recurring items) beat the Zacks Consensus Estimate of 47 cents and improved 25% year over year.
Total revenues of $3,815 million outperformed the Zacks Consensus Estimate of $3,642.2 million. The top line increased 28% year over year on the back of higher revenues in almost all markets, driven by pricing gains, fuel surcharge and contribution from the acquisition of Quality Carriers. Overall revenues per unit increased 27%.
Second-quarter operating income climbed 1% to $1,703 million. The operating ratio (operating expenses as a percentage of revenues) improved to 55.4% from 43.4% in the prior-year quarter, with operating expenses increasing 63% year over year.
Merchandise revenues climbed 10% year over year to $2,101 million in the reported quarter on the back of price and higher fuel surcharge revenues. Merchandise volumes remained almost flat at $657 million. Segmental revenue per unit increased 10%.
Intermodal revenues augmented 18% year over year to $602 million. Volumes rose 1% year over year. Strength in the international business was partially offset by lower domestic shipments due to continued equipment challenges during the reported quarter. Segmental revenue per unit increased 17%.
Coal revenues ascended 54% year over year to $651 million in the reported quarter. Coal volumes decreased 3% due to mine disruptions and an outage at CSX’s Curtis Bay export facility. Segmental revenue per unit surged 58%.
Effective third-quarter 2021, CSX introduced a segment called Trucking comprising the operations of Quality Carriers, acquired by CSX last year. Revenues from the segment totaled $259 million in the second quarter.
Other revenues jumped 32% to $202 million in the reported quarter. The uptick was owing to higher intermodal storage and equipment usage.
Liquidity, Dividends and Buyback
CSX exited the second quarter with cash and cash equivalents of $724 million compared with $1,936 million at the end of March 2022. Long-term debt totaled $15,974 million compared with $$16,019 million in March 2022. As of Jun 30, 2022 CSX rewarded its shareholders through buybacks and dividends with $1,499 million and $215 million, respectively.
Outlook
CSX continues to expect double-digit revenue and operating income growth for the full-year 2022. High export coal prices during the first half of the year, with fuel prices going higher, have enabled management to stick to its previously unveiled guidance. CSX still expects capital expenditures to be approximately $2 billion in 2022.
Delta AirLines’ (DAL - Free Report) second-quarter 2022 earnings (excluding 29 cents from non-recurring items) of $1.44 per share fell short of the Zacks Consensus Estimate of $1.71. Escalated operating expenses induced the earnings miss. Multiple flight cancellations in May and June also hurt results. The earnings miss disappointed investors, resulting in the stock shedding value in early trading. In the year-ago quarter, Delta incurred a loss of $1.07 per share when air-travel demand was not as buoyant as in the current scenario.
DAL’s revenues came in at $13,824 million, which not only beat the Zacks Consensus Estimate of $13,608.9 million but also soared 94% from the year-ago quarter’s figure as air-travel demand rebounded from the pandemic lows. The uptick in air-travel demand in the United States can be gauged from the fact that 75.9% of second-quarter 2022 passenger revenues came from the domestic markets.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected second-quarter 2022 results, wherein both the earnings and revenues outperformed the Zacks Consensus Estimate.
JBHT’s quarterly earnings of $2.42 per share surpassed the Zacks Consensus Estimate of $1.61 and improved 50.3% year over year.
JBHT’stotal operating revenues of $3,837.53 million also outperformed the Zacks Consensus Estimate of $2,908.37 million. The top line jumped 32% year over year on the back of strength across all segments. JBHT’s total operating revenues, excluding fuel surcharges, rose 21.2% year over year.
United Airlines’ (UAL - Free Report) second-quarter 2022 earnings (excluding 43 cents from non-recurring items) of $1.43 per share fell short of the Zacks Consensus Estimate of $1.86. Escalated operating expenses induced the earnings miss. In the year-ago quarter, UAL incurred a loss of $3.91 per share when air-travel demand was not as buoyant as in the current scenario. The second quarter of 2022 was the first profitable quarter at UAL since the onset of the pandemic.
UAL’s operating revenues of $12,112 million marginally beat the Zacks Consensus Estimate of $12,033.7 million. Revenues increased more than 100% year over year owing to upbeat air-travel demand.
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CSX Q2 Earnings & Revenues Surpass Estimates, Up Y/Y
CSX Corporation (CSX - Free Report) ) reported better-than-expected second-quarter 2022 results, wherein both the earnings and revenues outperformed the Zacks Consensus Estimate.
Quarterly earnings of 50 cents per share (excluding 4 cents from non-recurring items) beat the Zacks Consensus Estimate of 47 cents and improved 25% year over year.
Total revenues of $3,815 million outperformed the Zacks Consensus Estimate of $3,642.2 million. The top line increased 28% year over year on the back of higher revenues in almost all markets, driven by pricing gains, fuel surcharge and contribution from the acquisition of Quality Carriers. Overall revenues per unit increased 27%.
Second-quarter operating income climbed 1% to $1,703 million. The operating ratio (operating expenses as a percentage of revenues) improved to 55.4% from 43.4% in the prior-year quarter, with operating expenses increasing 63% year over year.
CSX Corporation Price, Consensus and EPS Surprise
CSX Corporation price-consensus-eps-surprise-chart | CSX Corporation Quote
Segmental Performances
Merchandise revenues climbed 10% year over year to $2,101 million in the reported quarter on the back of price and higher fuel surcharge revenues. Merchandise volumes remained almost flat at $657 million. Segmental revenue per unit increased 10%.
Intermodal revenues augmented 18% year over year to $602 million. Volumes rose 1% year over year. Strength in the international business was partially offset by lower domestic shipments due to continued equipment challenges during the reported quarter. Segmental revenue per unit increased 17%.
Coal revenues ascended 54% year over year to $651 million in the reported quarter. Coal volumes decreased 3% due to mine disruptions and an outage at CSX’s Curtis Bay export facility. Segmental revenue per unit surged 58%.
Effective third-quarter 2021, CSX introduced a segment called Trucking comprising the operations of Quality Carriers, acquired by CSX last year. Revenues from the segment totaled $259 million in the second quarter.
Other revenues jumped 32% to $202 million in the reported quarter. The uptick was owing to higher intermodal storage and equipment usage.
Liquidity, Dividends and Buyback
CSX exited the second quarter with cash and cash equivalents of $724 million compared with $1,936 million at the end of March 2022. Long-term debt totaled $15,974 million compared with $$16,019 million in March 2022. As of Jun 30, 2022 CSX rewarded its shareholders through buybacks and dividends with $1,499 million and $215 million, respectively.
Outlook
CSX continues to expect double-digit revenue and operating income growth for the full-year 2022. High export coal prices during the first half of the year, with fuel prices going higher, have enabled management to stick to its previously unveiled guidance. CSX still expects capital expenditures to be approximately $2 billion in 2022.
Currently, CSX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Transportation Companies
Delta AirLines’ (DAL - Free Report) second-quarter 2022 earnings (excluding 29 cents from non-recurring items) of $1.44 per share fell short of the Zacks Consensus Estimate of $1.71. Escalated operating expenses induced the earnings miss. Multiple flight cancellations in May and June also hurt results. The earnings miss disappointed investors, resulting in the stock shedding value in early trading. In the year-ago quarter, Delta incurred a loss of $1.07 per share when air-travel demand was not as buoyant as in the current scenario.
DAL’s revenues came in at $13,824 million, which not only beat the Zacks Consensus Estimate of $13,608.9 million but also soared 94% from the year-ago quarter’s figure as air-travel demand rebounded from the pandemic lows. The uptick in air-travel demand in the United States can be gauged from the fact that 75.9% of second-quarter 2022 passenger revenues came from the domestic markets.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected second-quarter 2022 results, wherein both the earnings and revenues outperformed the Zacks Consensus Estimate.
JBHT’s quarterly earnings of $2.42 per share surpassed the Zacks Consensus Estimate of $1.61 and improved 50.3% year over year.
JBHT’stotal operating revenues of $3,837.53 million also outperformed the Zacks Consensus Estimate of $2,908.37 million. The top line jumped 32% year over year on the back of strength across all segments. JBHT’s total operating revenues, excluding fuel surcharges, rose 21.2% year over year.
United Airlines’ (UAL - Free Report) second-quarter 2022 earnings (excluding 43 cents from non-recurring items) of $1.43 per share fell short of the Zacks Consensus Estimate of $1.86. Escalated operating expenses induced the earnings miss. In the year-ago quarter, UAL incurred a loss of $3.91 per share when air-travel demand was not as buoyant as in the current scenario. The second quarter of 2022 was the first profitable quarter at UAL since the onset of the pandemic.
UAL’s operating revenues of $12,112 million marginally beat the Zacks Consensus Estimate of $12,033.7 million. Revenues increased more than 100% year over year owing to upbeat air-travel demand.