We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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's Earnings & Revenues Miss Estimates in Q3, Increase Y/Y
Read MoreHide Full Article
CSX Corporation's (CSX - Free Report) third-quarter 2024 earnings per share of 46 cents fell short of the Zacks Consensus Estimate by two cents. However, the bottom line increased on a year-over-year basis on the back of higher revenues as freight volumes grew.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Total revenues of $3.62 billion increased 1% year over year, driven by merchandise pricing gains and growth in intermodal and merchandise volumes. The positives outweighed the negatives like low coal revenues, reduced fuel surcharge and lower other revenues. Revenues fell short of the Zacks Consensus Estimate of $3.68 billion.
The third-quarter operating income increased 7% to $1.35 billion. Total expenses rose 2% year over year to $2.3 billion. This rise in operating expenses was due to the 6% increase in labor and fringe costs to $806 million. Overall volumes grew 3% year over year.
Merchandise revenues improved 6% year over year to $2.23 billion in the reported quarter. The metric was just shy of our estimate of $2.24 billion. Merchandise volumes rose 3% year over year to $683 million. Segmental revenue per unit increased 2%.
Intermodal revenues decreased 2% year over year to $509 million. The metric was below our estimate of $562 million. Segmental volumes increased 3% while revenue per unit decreased 5%.
Coal revenues fell 7% year over year to $553 million in the reported quarter. The metric was below our estimate of $589 million. Coal volumes decreased 2%. Segmental revenue per unit fell 5%.
Trucking revenues totaled $214 million, down 2% year over year. Other revenues plunged 15% to $112 million in the reported quarter.
Liquidity
CSX exited the third quarter of 2024 with cash and cash equivalents of $1.64 billion compared with $1.35 billion at the end of 2023. Long-term debt totaled $18.53 billion compared with $17.97 billion at the end of 2023.
CSX generated $3.86 billion in cash from operating activities in the reported quarter. The free cash flow came in at $2.22 billion (before payment of dividends).
CSX expects a current-year capex of $2.5 billion (excluding the rebuild of infrastructure damaged by recent hurricanes).
Management expects volumes to grow modestly in the final quarter of 2024. Revenues in the fourth quarter are likely to be down moderately (approximately by $200 million) due to lower fuel prices and softer coal markets.
Performance of Some Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported third-quarter 2024 earnings (excluding 47 cents from non-recurring items) of $1.50 per share, which fell short of the Zacks Consensus Estimate of $1.56. Earnings decreased 26.11% on a year-over-year basis due to high labor costs.
Revenues of $15.68 billion surpassed the Zacks Consensus Estimate of $15.37 billion and increased 1.2% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.59 billion, flat year over year. This was inclusive of the $380 million impact from the outage caused by CrowdStrike (CRWD - Free Report) .
J.B. Hunt Transport Services’ (JBHT - Free Report) third-quarter 2024 earnings of $1.49 per share outpaced the Zacks Consensus Estimate of $1.42 but declined 17.2% year over year.
Total operating revenues of $3.07 billion surpassed the Zacks Consensus Estimate of $3.04 billion but fell 3% year over year. Operating income for the September quarter decreased 7% year over year to $224.1 million.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CSX's Earnings & Revenues Miss Estimates in Q3, Increase Y/Y
CSX Corporation's (CSX - Free Report) third-quarter 2024 earnings per share of 46 cents fell short of the Zacks Consensus Estimate by two cents. However, the bottom line increased on a year-over-year basis on the back of higher revenues as freight volumes grew.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Total revenues of $3.62 billion increased 1% year over year, driven by merchandise pricing gains and growth in intermodal and merchandise volumes. The positives outweighed the negatives like low coal revenues, reduced fuel surcharge and lower other revenues. Revenues fell short of the Zacks Consensus Estimate of $3.68 billion.
The third-quarter operating income increased 7% to $1.35 billion. Total expenses rose 2% year over year to $2.3 billion. This rise in operating expenses was due to the 6% increase in labor and fringe costs to $806 million. Overall volumes grew 3% year over year.
CSX Corporation Price, Consensus and EPS Surprise
CSX Corporation price-consensus-eps-surprise-chart | CSX Corporation Quote
Segmental Performance of CSX
Merchandise revenues improved 6% year over year to $2.23 billion in the reported quarter. The metric was just shy of our estimate of $2.24 billion. Merchandise volumes rose 3% year over year to $683 million. Segmental revenue per unit increased 2%.
Intermodal revenues decreased 2% year over year to $509 million. The metric was below our estimate of $562 million. Segmental volumes increased 3% while revenue per unit decreased 5%.
Coal revenues fell 7% year over year to $553 million in the reported quarter. The metric was below our estimate of $589 million. Coal volumes decreased 2%. Segmental revenue per unit fell 5%.
Trucking revenues totaled $214 million, down 2% year over year. Other revenues plunged 15% to $112 million in the reported quarter.
Liquidity
CSX exited the third quarter of 2024 with cash and cash equivalents of $1.64 billion compared with $1.35 billion at the end of 2023. Long-term debt totaled $18.53 billion compared with $17.97 billion at the end of 2023.
CSX generated $3.86 billion in cash from operating activities in the reported quarter. The free cash flow came in at $2.22 billion (before payment of dividends).
Currently, CSX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Outlook Provided by CSX
CSX expects a current-year capex of $2.5 billion (excluding the rebuild of infrastructure damaged by recent hurricanes).
Management expects volumes to grow modestly in the final quarter of 2024. Revenues in the fourth quarter are likely to be down moderately (approximately by $200 million) due to lower fuel prices and softer coal markets.
Performance of Some Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported third-quarter 2024 earnings (excluding 47 cents from non-recurring items) of $1.50 per share, which fell short of the Zacks Consensus Estimate of $1.56. Earnings decreased 26.11% on a year-over-year basis due to high labor costs.
Revenues of $15.68 billion surpassed the Zacks Consensus Estimate of $15.37 billion and increased 1.2% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.59 billion, flat year over year. This was inclusive of the $380 million impact from the outage caused by CrowdStrike (CRWD - Free Report) .
J.B. Hunt Transport Services’ (JBHT - Free Report) third-quarter 2024 earnings of $1.49 per share outpaced the Zacks Consensus Estimate of $1.42 but declined 17.2% year over year.
Total operating revenues of $3.07 billion surpassed the Zacks Consensus Estimate of $3.04 billion but fell 3% year over year. Operating income for the September quarter decreased 7% year over year to $224.1 million.