CSX Corporation is expected to announce quarterly earnings on July 14th, with an Estimize consensus estimate of $0.55, 2 cents higher than Wall Street. Last quarter, CSX reported earnings on April 14th, announcing EPS of $0.45, matching Wall Street’s estimate, but missing Estimize by a penny. Over the last three quarters, CSX YoY growth has remained in the double digits, it will be interesting to see whether CSX can continue to grow at this pace in Q2.CSX’s revenue is also expected to increase, according to Wall Street and Estimize. While there was no YoY growth in revenue last quarter, Wall Street predicts revenue to increase to $3.142B, up from $3.027B last quarter. Estimize expects even higher revenue of $3.177B.
CSX Corporation is a global freight transportation company, providing rail, intermodal, domestic container-shipping, barging, and contract logistics services around the world. The company’s rail transportation services are mainly provided in the eastern United States. For the last quarter, CSX has been focusing on expanding its operations, increasing commodity coverage, expanding profit margins, and expensing management to improve its margins. The company has seen strength in its stock price performance as well growth in EPS, net income, and revenues.However, one issue that may be noted in tomorrow’s call is the recent derailment in eastern Tennessee. A CSX train carrying acrylonitrile, used in a variety of industrial processes, derailed in Blount County, 19 miles south of Knoxville. CSX said in a statement that acrylonitrile is flammable and dangerous if inhaled. This derailment ignited a fire in one car and spreading noxious fumes that forced the evacuation of more than 5,000 people and the hospitalization of 25 people. The company is now facing a class action lawsuit, and the stock has dropped a little over 1% since the occurrence.
Overall, CSX should benefit from industrial growth and increased construction spending in the second quarter, especially as industrial activity is picking up in the US.
(Photo Credit: Ivan Safyan Abrams)