CSX's Earnings & Revenues Miss Estimates in Q3, Increase Y/Y

CSX Corporation's CSX third-quarter 2024 earnings per share of 46 cents fell short of the Zacks Consensus Estimate by two cents. However, the bottom line increased on a year-over-year basis on the back of higher revenues as freight volumes grew.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Total revenues of $3.62 billion increased 1% year over year, driven by merchandise pricing gains and growth in intermodal and merchandise volumes. The positives outweighed the negatives like low coal revenues, reduced fuel surcharge and lower other revenues. Revenues fell short of the Zacks Consensus Estimate of $3.68 billion.

The third-quarter operating income increased 7% to $1.35 billion. Total expenses rose 2% year over year to $2.3 billion. This rise in operating expenses was due to the 6% increase in labor and fringe costs to $806 million. Overall volumes grew 3% year over year.

Segmental Performance of CSX

Merchandise revenues improved 6% year over year to $2.23 billion in the reported quarter. The metric was just shy of our estimate of $2.24 billion. Merchandise volumes rose 3% year over year to $683 million. Segmental revenue per unit increased 2%.

Intermodal revenues decreased 2% year over year to $509 million. The metric was below our estimate of $562 million. Segmental volumes increased 3% while revenue per unit decreased 5%.

Coal revenues fell 7% year over year to $553 million in the reported quarter. The metric was below our estimate of $589 million. Coal volumes decreased 2%. Segmental revenue per unit fell 5%.

Trucking revenues totaled $214 million, down 2% year over year. Other revenues plunged 15% to $112 million in the reported quarter. 

Liquidity

CSX exited the third quarter of 2024 with cash and cash equivalents of $1.64 billion compared with $1.35 billion at the end of 2023. Long-term debt totaled $18.53 billion compared with $17.97 billion at the end of 2023.

CSX generated $3.86 billion in cash from operating activities in the reported quarter. The free cash flow came in at $2.22 billion (before payment of 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 Provided by CSX

CSX expects a current-year capex of $2.5 billion (excluding the rebuild of infrastructure damaged by recent hurricanes).

Management expects volumes to grow modestly in the final quarter of 2024. Revenues in the fourth quarter are likely to be down moderately (approximately by $200 million) due to lower fuel prices and softer coal markets.

Performance of Some Other Transportation Companies

Delta Air Lines DAL reported third-quarter 2024 earnings (excluding 47 cents from non-recurring items) of $1.50 per share, which fell short of the Zacks Consensus Estimate of $1.56. Earnings decreased 26.11% on a year-over-year basis due to high labor costs.

Revenues of $15.68 billion surpassed the Zacks Consensus Estimate of $15.37 billion and increased 1.2% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.59 billion, flat year over year. This was inclusive of the $380 million impact from the outage caused by CrowdStrike CRWD.

J.B. Hunt Transport Services’ JBHT third-quarter 2024 earnings of $1.49 per share outpaced the Zacks Consensus Estimate of $1.42 but declined 17.2% year over year.

Total operating revenues of $3.07 billion surpassed the Zacks Consensus Estimate of $3.04 billion but fell 3% year over year. Operating income for the September quarter decreased 7% year over year to $224.1 million.

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CSX Corporation (CSX): Free Stock Analysis Report
 
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