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CSX's Earnings and Revenues Surpass Estimates in Q2
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CSX Corporation's (CSX - Free Report) second-quarter 2024 earnings per share of 49 cents beat the Zacks Consensus Estimate by a penny. However, the bottom line remained flat on a year-over-year basis.
Total revenues of $3.7 billion marginally topped the Zacks Consensus Estimate. The top line was flat year over year. The positive effects of merchandise pricing gains and growth in intermodal and merchandise volumes were offset by declines in export coal prices, other revenues and fuel surcharge.
The second-quarter operating income fell 1.4% to $1.45 billion. Total expenses were down 1% year over year to $2.3 billion. This fall in operating expenses was primarily driven by the decrease in labor and fringe costs, amounting to $766 million. CSX expects a current-year capex of approximately $2.5 billion.
Merchandise revenues improved 5% year over year to $2.3 billion in the reported quarter. The metric was just above our estimate of $2.28 billion. Merchandise volumes rose by 1% year over year to $683 million. Segmental revenue per unit increased 4%.
Intermodal revenues grew 3% year over year to $506 million. The metric was below our estimate of $522 million. Segmental revenue per unit decreased 2%.
Coal revenues fell by 12% year over year to $563 million in the reported quarter. Coal volumes decreased 3%. Segmental revenue per unit fell 9%.
Trucking revenues totaled $221 million, down 3% year over year. Other revenues plunged 22% to $115 million in the reported quarter.
Liquidity and Buyback
CSX exited the second quarter of 2024 with cash and cash equivalents of $1.24 billion compared with $1.35 billion at the end of the fourth quarter of 2023. Long-term debt totaled $17.95 billion compared with $17.97 billion at the end of the fourth quarter of 2023.
CSX generated $2.17 billion of cash from operating activities in the reported quarter. Free cash flow came in at $1.15 billion (before payment of dividends).
During the second quarter of 2024, CSX rewarded its shareholders through buybacks worth $810 million and paid $468 million in dividends.
Management expectslow to mid-single-digit total volume and revenue growth in the second half of 2024, driven by continued opportunities across Merchandise, Intermodal and Export Coal.
The company expects current-year profitability to be driven by solid pricing, an improvement in efficiency and lower cost inflation.
CSX anticipates to end 2024 with a capex of approximately $2.5 billion.
Q2 Performances of Other Transportation Companies
Delta Air Lines’ (DAL - Free Report) second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share missed the Zacks Consensus Estimate of $2.37 and decreased 12% year over year.
Revenues of $16.7billion surpassed the Zacks Consensus Estimate of $16.3 billion and increased 7% on a year-over-year basis. Passenger revenues, accounting for 83% of the total revenues, improved 5% year over year.
United Airlines (UAL - Free Report) reported second-quarter 2024 earnings (excluding 18 cents from non-recurring items) of $4.14 per share, which surpassed the Zacks Consensus Estimate of $3.97 per share. However, the bottom line decreased 17.69% year over year.
Operating revenues of $15 billion missed the Zacks Consensus Estimate of $15.13 billion. However, the top line increased 5.7% year over year due to upbeat air travel demand. Cargo revenues rose by 14.4% year over year to $414 million. Revenues from other sources jumped 9.6% year over year to $892 million.
J.B. Hunt Transport Services’ (JBHT - Free Report) second-quarter 2024 earnings per share of $1.32 missed the Zacks Consensus Estimate of $1.51 and declined 27.1% year over year.
Total operating revenues of $2.93 billion lagged the Zacks Consensus Estimate of $3.04 billion and fell 6.5% year over year. Total operating revenues, excluding fuel surcharge revenues, decreased approximately 6% year over year.
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CSX's Earnings and Revenues Surpass Estimates in Q2
CSX Corporation's (CSX - Free Report) second-quarter 2024 earnings per share of 49 cents beat the Zacks Consensus Estimate by a penny. However, the bottom line remained flat on a year-over-year basis.
Total revenues of $3.7 billion marginally topped the Zacks Consensus Estimate. The top line was flat year over year. The positive effects of merchandise pricing gains and growth in intermodal and merchandise volumes were offset by declines in export coal prices, other revenues and fuel surcharge.
The second-quarter operating income fell 1.4% to $1.45 billion. Total expenses were down 1% year over year to $2.3 billion. This fall in operating expenses was primarily driven by the decrease in labor and fringe costs, amounting to $766 million. CSX expects a current-year capex of approximately $2.5 billion.
CSX Corporation Price, Consensus and EPS Surprise
CSX Corporation price-consensus-eps-surprise-chart | CSX Corporation Quote
Segmental Performances
Merchandise revenues improved 5% year over year to $2.3 billion in the reported quarter. The metric was just above our estimate of $2.28 billion. Merchandise volumes rose by 1% year over year to $683 million. Segmental revenue per unit increased 4%.
Intermodal revenues grew 3% year over year to $506 million. The metric was below our estimate of $522 million. Segmental revenue per unit decreased 2%.
Coal revenues fell by 12% year over year to $563 million in the reported quarter. Coal volumes decreased 3%. Segmental revenue per unit fell 9%.
Trucking revenues totaled $221 million, down 3% year over year. Other revenues plunged 22% to $115 million in the reported quarter.
Liquidity and Buyback
CSX exited the second quarter of 2024 with cash and cash equivalents of $1.24 billion compared with $1.35 billion at the end of the fourth quarter of 2023. Long-term debt totaled $17.95 billion compared with $17.97 billion at the end of the fourth quarter of 2023.
CSX generated $2.17 billion of cash from operating activities in the reported quarter. Free cash flow came in at $1.15 billion (before payment of dividends).
During the second quarter of 2024, CSX rewarded its shareholders through buybacks worth $810 million and paid $468 million in 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
Management expectslow to mid-single-digit total volume and revenue growth in the second half of 2024, driven by continued opportunities across Merchandise, Intermodal and Export Coal.
The company expects current-year profitability to be driven by solid pricing, an improvement in efficiency and lower cost inflation.
CSX anticipates to end 2024 with a capex of approximately $2.5 billion.
Q2 Performances of Other Transportation Companies
Delta Air Lines’ (DAL - Free Report) second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share missed the Zacks Consensus Estimate of $2.37 and decreased 12% year over year.
Revenues of $16.7billion surpassed the Zacks Consensus Estimate of $16.3 billion and increased 7% on a year-over-year basis. Passenger revenues, accounting for 83% of the total revenues, improved 5% year over year.
United Airlines (UAL - Free Report) reported second-quarter 2024 earnings (excluding 18 cents from non-recurring items) of $4.14 per share, which surpassed the Zacks Consensus Estimate of $3.97 per share. However, the bottom line decreased 17.69% year over year.
Operating revenues of $15 billion missed the Zacks Consensus Estimate of $15.13 billion. However, the top line increased 5.7% year over year due to upbeat air travel demand. Cargo revenues rose by 14.4% year over year to $414 million. Revenues from other sources jumped 9.6% year over year to $892 million.
J.B. Hunt Transport Services’ (JBHT - Free Report) second-quarter 2024 earnings per share of $1.32 missed the Zacks Consensus Estimate of $1.51 and declined 27.1% year over year.
Total operating revenues of $2.93 billion lagged the Zacks Consensus Estimate of $3.04 billion and fell 6.5% year over year. Total operating revenues, excluding fuel surcharge revenues, decreased approximately 6% year over year.