CSX Q2 revenue misses estimates

Overview

• CSX Q2 revenue falls 3% yr/yr to $3.57 bln, missing analyst expectations
• Operating income down 11% yr/yr, with EPS decreasing 10% yr/yr
• Co cites lower coal prices, reduced fuel surcharges for revenue decline

Outlook

• CSX focused on completing major infrastructure projects for growth
• Company notes uncertainty impacting select industrial markets

Result Drivers

• LOWER COAL PRICES - Revenue impacted by lower export coal prices, partially offset by higher merchandise pricing
• FUEL SURCHARGE REDUCTION - Reduced fuel surcharges contributed to the decline in revenue
• INTERMODAL GROWTH - Growth in intermodal volume helped offset some revenue declines

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"
• The average consensus recommendation for the ground freight & logistics peer group is "buy"
• Wall Street's median 12-month price target for CSX Corp is $36.00, about 2.1% above its July 22 closing price of $35.23
• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 16 three months ago