CSX Gears Up to Report Q3 Earnings: What's in the Cards?

CSX Corporation (CSX) is scheduled to report third-quarter 2024 results on Oct. 16, after market close.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

CSX has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters and matched once, the average beat being 1.64%.

Let’s see how things have shaped up for CSX this earnings season.

CSX’s Q3 Expectations

The Zacks Consensus Estimate for CSX’sthird-quarter 2024 revenues is pegged at $3.70 billion, indicating 3.5% growth year over year. The top line is likely to have been aided by the positive effects of merchandise pricing gains and growth in intermodal and merchandise volume.

The Zacks Consensus Estimate for third-quarter Merchandise revenues is pegged at $2.26 billion, indicating a 7% increase from the year-ago reported figure. Our estimate of $2.24 billion implies growth of 6.2% year over year.

The Zacks Consensus Estimate for third-quarter Intermodal revenues is pegged at $531.24 million, indicating 2.8% growth from the year-ago reported figure. Our estimate of $562.3 million implies growth of 8.8% year over year.

The Zacks Consensus Estimate for third-quarter Coal revenues is pegged at $564.89 million, indicating a 4.9% decline from the year-ago reported figure. Our estimate of $589.4 million implies a decline of 0.8% year over year.

On the flip side, rail network issues due to headwinds like locomotive or crew/labor shortages and other service disruptions represent a major challenge for CSX. Network issues or supply-chain constraints are likely to have affected service levels in turn hurting operating efficiency or volume of shipments.

CSX’s high capital expenditures may further impede its bottom line. The Zacks Consensus Estimate for CSX’s third-quarter 2024 earnings has been revised downward by a penny in the past 90 days.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for CSX this time around. 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

CSX has an Earnings ESP of -0.52% and a Zacks Rank #3.

CSX’s Q2 Highlights

CSX's 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.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Southwest Airlines LUV has an Earnings ESP of +68.16% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

LUV is set to release third-quarter results on Oct. 24. Upbeat air-travel demand is likely to have aided the quarterly performance.

The Zacks Consensus Estimate for third-quarter 2024 earnings has moved north 116.7% in the past 60 days to 4 cents per share. LUV’s earnings surpassed the Zacks Consensus Estimate in two of the preceding four quarters, missed once and met in the other, delivering an average surprise of 61.6%.

C.H. Robinson CHRW has an Earnings ESP of +7.83% and a Zacks Rank #3 at present. CHRW is scheduled to report third-quarter 2024 earnings on Oct. 30. Low operating costs are expected to have aided CHRW’s performance in the to-be-reported quarter.

The Zacks Consensus Estimate for third-quarter earnings has been revised 1.9% upward in the past 60 days. CHRW’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average beat being 7.3%.

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