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.
Will CSX Q1 Earnings be a Let Down Due to Coronavirus Woes?
Read MoreHide Full Article
CSX Corporation (CSX - Free Report) is scheduled to report first-quarter 2020 results on Apr 22, after the market closes.
The Zacks Consensus Estimate for first-quarter earnings has been revised 1.1% downward in the past 7 days.
Against this backdrop, let’s take a look at the factors that might have influenced the company’s quarterly performance.
We expect CSX’s overall volumes for the to-reported quarter to have been dented by coronavirus-induced supply-chain disruptions. The Zacks Consensus Estimate for total volumes implies a 3.3% decline from the year-ago reported figure.
Notably, intermodal volumes had been weak even before the COVID-19 outbreak and the pandemic is likely to have further complicated matters with imports at the major U.S. retail container ports declining rapidly. The Zacks Consensus Estimate for intermodal volumes indicates a 3.1% decline from the year-ago reported figure.
Additionally, coal volumes are expected to have been soft in the first quarter due to low domestic coal demand. Further, reduced coal volumes are likely to have hurt coal revenues in the quarter. The consensus mark for coal revenues suggests a 21% dip from the number reported in the first quarter of 2019.
However, cost-control measures adopted by CSX courtesy of the precision scheduled railroading model, are expected to reflect on its bottom line. As has been the case over the last few quarters, the company’s operating ratio (operating expenses as a percentage of revenues) is expected to have improved in the first quarter owing to cost-containment initiatives.
The proven Zacks model does not conclusively predict 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 a positive surprise. However, that is not 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 -0.34%. 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 #4 (Sell), currently.
Highlights of Q4 Earnings
In the last reported quarter, CSX’s earnings of 99 cents per share beat the Zacks Consensus Estimate of 97 cents. However, the bottom line slipped approximately 2% year over year due to lower revenues. Meanwhile, total revenues of $2,885 million lagged the Zacks Consensus Estimate of $2,918.2 million and also decreased 8.2% year over year.
Stocks to Consider
Here are a few stocks worth considering from the broader Zacks Transportation sector as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Covenant Transportation Group has an Earnings ESP of +10.00% and a Zacks Rank #3.
Scorpio Tankers (STNG - Free Report) has an Earnings ESP of +12.30% and a Zacks Rank of 3.
Golar LNG (GLNG - Free Report) has an Earnings ESP of +1100.00% and a Zacks Rank of 3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Will CSX Q1 Earnings be a Let Down Due to Coronavirus Woes?
CSX Corporation (CSX - Free Report) is scheduled to report first-quarter 2020 results on Apr 22, after the market closes.
The Zacks Consensus Estimate for first-quarter earnings has been revised 1.1% downward in the past 7 days.
Against this backdrop, let’s take a look at the factors that might have influenced the company’s quarterly performance.
We expect CSX’s overall volumes for the to-reported quarter to have been dented by coronavirus-induced supply-chain disruptions. The Zacks Consensus Estimate for total volumes implies a 3.3% decline from the year-ago reported figure.
Notably, intermodal volumes had been weak even before the COVID-19 outbreak and the pandemic is likely to have further complicated matters with imports at the major U.S. retail container ports declining rapidly. The Zacks Consensus Estimate for intermodal volumes indicates a 3.1% decline from the year-ago reported figure.
Additionally, coal volumes are expected to have been soft in the first quarter due to low domestic coal demand. Further, reduced coal volumes are likely to have hurt coal revenues in the quarter. The consensus mark for coal revenues suggests a 21% dip from the number reported in the first quarter of 2019.
However, cost-control measures adopted by CSX courtesy of the precision scheduled railroading model, are expected to reflect on its bottom line. As has been the case over the last few quarters, the company’s operating ratio (operating expenses as a percentage of revenues) is expected to have improved in the first quarter owing to cost-containment initiatives.
CSX Corporation Price and EPS Surprise
CSX Corporation price-eps-surprise | CSX Corporation Quote
What Does the Zacks Model Say?
The proven Zacks model does not conclusively predict 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 a positive surprise. However, that is not 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 -0.34%. 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 #4 (Sell), currently.
Highlights of Q4 Earnings
In the last reported quarter, CSX’s earnings of 99 cents per share beat the Zacks Consensus Estimate of 97 cents. However, the bottom line slipped approximately 2% year over year due to lower revenues. Meanwhile, total revenues of $2,885 million lagged the Zacks Consensus Estimate of $2,918.2 million and also decreased 8.2% year over year.
Stocks to Consider
Here are a few stocks worth considering from the broader Zacks Transportation sector as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Covenant Transportation Group has an Earnings ESP of +10.00% and a Zacks Rank #3.
Scorpio Tankers (STNG - Free Report) has an Earnings ESP of +12.30% and a Zacks Rank of 3.
Golar LNG (GLNG - Free Report) has an Earnings ESP of +1100.00% and a Zacks Rank of 3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>