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CSX Tops Q1 Earnings Estimates, Suspends View on Coronavirus Woes
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CSX Corporation (CSX - Free Report) reported first-quarter 2020 earnings of $1 per share, beating the Zacks Consensus Estimate of 92 cents. However, the bottom line slipped approximately 2% year over year due to a drop in revenues.
The earnings beat despite coronavirus-related adversities perhaps pleased investors, sending shares of the company up more than 2% in after-hour trading on Apr 22.
Meanwhile, total revenues of $2,855 million lagged the consensus estimate of $2,877 million and declined approximately 5% year over year owing to lower coal and other revenues.
First-quarter operating income dropped 3% year over year to $1.18 billion. Operating ratio (operating expenses as a percentage of revenues) improved to 58.7% from 59.5% in the prior-year quarter, with total expenses declining 7% from the year-ago period. Costs reduced primarily due to increased efficiency.
Merchandise revenues inched up 3% year over year to $1,927 million in the quarter under review. Merchandise volumes increased 2%.
Coal revenues plunged 25% year over year to $405 million in the reported quarter. Coal volumes also contracted 15% year over year due to lower domestic and export coal volumes.
Moreover, Intermodal revenues slid 1% year over year to $422 million. Volumes were flat year over year, with international volumes dwindling due to coronavirus-led closure of operations in China.
Other revenues too fell 40% to $101 million in the reported quarter.
Liquidity & Share Buyback
This Zacks Rank #4 (Sell) company exited the first quarter with cash and cash equivalents of $1,995 million compared with $958 million at the end of December 2019. Long-term debt totaled $16,477 million compared with $15,993 million at 2019-end. As of Mar 31, 2020, net cash provided by operating activities was $1,178 million compared with $1,173 million in the year-earlier period.
During the first quarter, the company repurchased 9 million shares at an average price of $64.75.
Suspension of Guidance
Taking the uncertainty surrounding coronavirus into consideration, CSX withdrew financial outlook. To combat the low-volume scenario caused by the health crisis, the company is controlling expenses as well as evaluating future capital spending.
Upcoming Releases
Investors interested in the broader Transportation sector are keenly awaiting first-quarter earnings reports from key players like Canadian National Railway Company (CNI - Free Report) , Norfolk Southern Corporation (NSC - Free Report) and Southwest Airlines Co. (LUV - Free Report) . While Canadian National and Southwest Airlines will release earnings numbers on Apr 27 and Apr 28, respectively, Norfolk Southern will announce the same on Apr 29.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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CSX Tops Q1 Earnings Estimates, Suspends View on Coronavirus Woes
CSX Corporation (CSX - Free Report) reported first-quarter 2020 earnings of $1 per share, beating the Zacks Consensus Estimate of 92 cents. However, the bottom line slipped approximately 2% year over year due to a drop in revenues.
The earnings beat despite coronavirus-related adversities perhaps pleased investors, sending shares of the company up more than 2% in after-hour trading on Apr 22.
Meanwhile, total revenues of $2,855 million lagged the consensus estimate of $2,877 million and declined approximately 5% year over year owing to lower coal and other revenues.
First-quarter operating income dropped 3% year over year to $1.18 billion. Operating ratio (operating expenses as a percentage of revenues) improved to 58.7% from 59.5% in the prior-year quarter, with total expenses declining 7% from the year-ago period. Costs reduced primarily due to increased efficiency.
CSX Corporation Price, Consensus and EPS Surprise
CSX Corporation price-consensus-eps-surprise-chart | CSX Corporation Quote
Segmental Performance
Merchandise revenues inched up 3% year over year to $1,927 million in the quarter under review. Merchandise volumes increased 2%.
Coal revenues plunged 25% year over year to $405 million in the reported quarter. Coal volumes also contracted 15% year over year due to lower domestic and export coal volumes.
Moreover, Intermodal revenues slid 1% year over year to $422 million. Volumes were flat year over year, with international volumes dwindling due to coronavirus-led closure of operations in China.
Other revenues too fell 40% to $101 million in the reported quarter.
Liquidity & Share Buyback
This Zacks Rank #4 (Sell) company exited the first quarter with cash and cash equivalents of $1,995 million compared with $958 million at the end of December 2019. Long-term debt totaled $16,477 million compared with $15,993 million at 2019-end. As of Mar 31, 2020, net cash provided by operating activities was $1,178 million compared with $1,173 million in the year-earlier period.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
During the first quarter, the company repurchased 9 million shares at an average price of $64.75.
Suspension of Guidance
Taking the uncertainty surrounding coronavirus into consideration, CSX withdrew financial outlook. To combat the low-volume scenario caused by the health crisis, the company is controlling expenses as well as evaluating future capital spending.
Upcoming Releases
Investors interested in the broader Transportation sector are keenly awaiting first-quarter earnings reports from key players like Canadian National Railway Company (CNI - Free Report) , Norfolk Southern Corporation (NSC - Free Report) and Southwest Airlines Co. (LUV - Free Report) . While Canadian National and Southwest Airlines will release earnings numbers on Apr 27 and Apr 28, respectively, Norfolk Southern will announce the same on Apr 29.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>