CSX Q4 revenue slightly misses estimates, partly hurt by lower merchandise volume

Overview

• Transportation company's Q4 revenue slightly missed analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company faced subdued industrial demand, impacting revenue

Result Drivers

• LOWER MERCHANDISE VOLUME - Revenue decline attributed to lower merchandise volume and reduced export coal revenue, despite higher pricing and intermodal volume

• SEVERANCE AND TECHNOLOGY EXPENSES - Q4 operating income and EPS impacted by $50 mln in severance and technology rationalization expenses

• SUBDUED INDUSTRIAL DEMAND - CEO cited subdued industrial demand environment as a factor impacting results

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 6 "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 $40.00, about 9.5% above its January 21 closing price of $36.53

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nGNX3vCbts

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