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CSX Q2 Earnings & Revenues Miss on Soft Intermodal Revenues

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CSX Corporation (CSX - Free Report) reported second-quarter 2019 earnings of $1.08 per share, missing the Zacks Consensus Estimate of $1.11. However, earnings increased 6.9% year over year. Meanwhile, total revenues of $3,061 million lagged the Zacks Consensus Estimate of $3,142.7 million and also dipped 1.3% year over year. Results were affected by disappointing performance of the intermodal segment.

The lower-than-expected results displeased investors. Consequently, the stock declined more than 6% in after-hours trading on Jul 16.

Second-quarter operating income inched up 2% year over year to $1,305 million. Operating ratio (operating expenses as a percentage of revenues) improved to 57.4% from 58.6% in the prior-year quarter with total expenses decreasing 3% from the year-ago period.

CSX Corporation Price, Consensus and EPS Surprise

 

CSX Corporation Price, Consensus and EPS Surprise

CSX Corporation price-consensus-eps-surprise-chart | CSX Corporation Quote


Segmental Performance

Merchandise revenues climbed 2% year over year to $1,944 million in the quarter under review. Also, merchandise volumes inched up 1% year over year.

Coal revenues slid 2% year over year to $557 million in the reported quarter. However, coal volumes grew 2% year over year.

Intermodal revenues declined 11% year over year to $436 million. Volumes also contracted 10% on a year-over-year basis.

Other revenues grossed $124 million, down 9% year over year.

Liquidity & Share Buyback

This Zacks Rank #4 (Sell) company exited the second quarter with cash and cash equivalents of $853 million compared with $858 million at the end of last December. Long-term debt totaled $15,522 million compared with $14,739 million at 2018 end. As of Jun 30, 2019, net cash provided by operating activities was $2,267 million compared with $2,009 million in the year-earlier period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Investors interested in the broader Transportation sector are keenly awaiting second-quarter 2019 earnings reports from key players like Union Pacific Corporation (UNP - Free Report) , Norfolk Southern Corporation (NSC - Free Report) and United Parcel Service (UPS - Free Report) . While Union Pacific will report second-quarter earnings on Jul 18, Norfolk Southern and UPS will announce the same on Jul 24.

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