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What's in the Cards for CSX Stock This Earnings Season?

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CSX (CSX - Free Report) is scheduled to report its second-quarter 2024 results on Aug 5 after market close.

CSX has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the preceding four quarters and meeting twice, the average beat being 1.12%.

CSX Corporation Price and EPS Surprise

CSX Corporation Price and EPS Surprise

CSX Corporation price-eps-surprise | CSX Corporation Quote

The Zacks Consensus Estimate for CSX’s soon-to-be-reported quarter’s earnings has remained flat in the past 60 days at 48 cents per share. Meanwhile,the Zacks Consensus Estimate for revenues is pegged at $3.7 billion, which indicates a marginal decline of 0.03% year over year.

CSX’s merchandise pricing, along with higher intermodal and coal volumes, are expected to have boosted the company's top line in the to-be-reported quarter.Our estimate for revenues from the merchandise and intermodal segment is pegged at $2.23 billion and $522.3 million, respectively, indicating an increase of 1.5% and 6.2% year over year.

Meanwhile, estimates for revenues from the coal, trucking and other segment are pegged at $590 million, $212 million and $139 million, respectively.

Rising operating expenses are hurting the company’sbottom line. This surge in operating expenses is primarily driven by the increase in salaries and benefits, exacerbating CSX’s prospects in the to-be-reported quarter. Our estimate for total second-quarter operating expenses has increased 3.6% year over year.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for CSX this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

CSX has an Earnings ESP of -1.58% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Highlights of Q1

CSX's first-quarter 2024 earnings per share of 46 cents beat the Zacks Consensus Estimate by a penny. However, the bottom line declined 4% year over year.

Total revenues of $3.68 billion surpassed the Zacks Consensus Estimate of $3.64 billion. The top line decreased 1% year over year due to a lower fuel surcharge, a decline in other revenues, lower trucking revenues and reduced export coal prices. 

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors might want to consider as well, as our model shows that these have the right combination of elements to beat second-quarter 2024 earnings.

Teekay Tankers (TNK - Free Report) has an Earnings ESP of +1.70% and a Zacks Rank #3. The company is scheduled to report second-quarter 2024 earnings on Aug 1.

TNK has a discouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missing twice, the average miss being 6.3%.

Expeditors International of Washington (EXPD - Free Report) has an Earnings ESP of +2.22% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.The company is scheduled to report second-quarter 2024 earnings on Aug 6.

EXPD has a discouraging earnings surprise history, having surpassed the Zacks Consensus Estimate only once in the preceding four quarters and missing thrice, the average miss being 3.44%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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