It has been about a month since the last earnings report for CSX (CSX Quick QuoteCSX - Free Report) . Shares have added about 1.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is CSX due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Earnings Beat at CSX in Q4

CSX's earnings of 49 cents per share beat the Zacks Consensus Estimate of 47 cents per share and improved 16.67% year over year. Total revenues of $3,730 million surpassed the Zacks Consensus Estimate of $3,722.1 million. The top line increased 8.84% year over year on the back of higher fuel surcharge, pricing gains, an increase in volumes, and an increase in storage and other revenues. Overall revenues per unit increased 11%.

Fourth-quarter operating income climbed 7% to $1,459 million. The operating ratio (operating expenses as a percentage of revenues) deteriorated to 60.9% from 60.1% in the prior-year quarter, despite total expenses decreasing 10% year over year.

Segmental Performances

Merchandise revenues climbed 7% year over year to $2,074 million in the reported quarter on the back of price and higher fuel surcharge revenues. Merchandise volumes declined 2% to $632 million. Segmental revenue per unit increased 9%.

Intermodal revenues augmented 4% year over year to $573 million. Volumes declined 5% year over year.

International shipments were affected by lower imports. Segmental revenue per unit increased 9%.

Coal revenues ascended 20% year over year to $626 million in the reported quarter. Coal volumes and segmental revenue per unit increased 9% each.

Export coal volumes increased owing to robust shipments of metallurgical coal. Moreover, domestic coal volumes increased in the December quarter due to higher shipments of utility coal.

Effective from third-quarter 2021, CSX introduced a segment called Trucking comprising the operations of Quality Carriers, acquired by CSX in 2021. Revenues from the segment totaled $226 million, up 8% year over year. Higher fuel surcharge led to this uptick.

Other revenues jumped 12% to $231 million in the reported quarter. The uptick was owing to lower revenue reserves, and higher demurrage and affiliate revenue.

Liquidity, Dividends and Buyback

CSX exited 2022 with cash and cash equivalents of $1,958 million compared with $2,239 million at the end of 2021. Long-term debt totaled $17,896 million compared with $16,185 million at 2021-end. As of Dec 31, 2022, CSX rewarded its shareholders through buybacks and dividends worth $4,731 million and $852 million, respectively.

Outlook

CSX expects capex for full-year 2023 to be around $2.3 billion. To combat inflationary pressures, management aims to focus on increasing efficiencies. Volumes are expected to be aided by strength in the merchandise and coal units.

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month.

VGM Scores

At this time, CSX has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

CSX has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.