CSX Corporation (CSX) reported disappointing fourth-quarter 2024 results, wherein both earnings and revenues lagged the Zacks Consensus Estimate.Quarterly earnings per share of 42 cents fell short of the Zacks Consensus Estimate by a penny and decreased 6.6% on a year-over-year basis on the back of lower revenues.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Total revenues of $3.53 million missed the Zacks Consensus Estimate of $3.58 million and declined 3.8% year over year. The downside was owing to lower fuel recovery and lower coal revenue, which includes the impact of lower global benchmark rates and hurricane impacts in 2024. This was partially offset by higher pricing and volume in merchandise and higher intermodal volume.
Fourth-quarter operating income decreased 16% year over year to $1.11 billion. Total expenses were up 3% year over year to $2.43 billion. Overall volumes increased 1% year over year.
CSX Corporation Price, Consensus and EPS Surprise
CSX Corporation price-consensus-eps-surprise-chart | CSX Corporation Quote
Q4 Segmental Performance of CSX
Merchandise revenues improved 0.4% year over year to $2.19 billion in the reported quarter, lower than our estimate of $2.24 billion. Merchandise volumes rose 0.3% year over year to $650 million. Segmental revenue per unit increased 0.1% year over year.
Intermodal revenues decreased 5% year over year to $526 million, lower than our estimate of $531.2 million. Segmental volumes increased 4% while revenue per unit decreased 8% year over year.
Coal revenues fell 20% year over year to $499 million in the reported quarter, lower than our estimate of $529.7 million. Coal volumes decreased 7% year over year. Segmental revenue per unit fell 14% year over year.
Trucking revenues totaled $194 million, down 5% year over year. Other revenues grew 6% year over year to $129 million in the reported quarter.
Liquidity
CSX exited the fourth quarter of 2024 with cash and cash equivalents of $933 million compared with $1.64 billion at the end of the prior quarter. Long-term debt totaled $17.89 billion compared with $18.53 billion at the end of the prior quarter.
CSX generated $1.38 billion of cash from operating activities in the reported quarter.
2025 Guidance of CSX
For 2025, CSX expects total volume growth in the low to mid-single digit. Intermodal and Merchandise momentum is expected to be supported by conversions and industrial development, while coal volumes are expected to be lower due to facility shutdowns and mine production issues.
Full-year revenues are likely to be affected by lower coal benchmarks, diesel prices and volume mix, especially in the first half of the year.
CSX will continue to focus on efficiency initiatives and labor productivity, with hurricane recovery and the Howard Street Tunnel project expected to impact operating income.
Capital expenditures are expected to be roughly flat year over year, excluding hurricane rebuild spending.
Zacks Rank & Price Performance
Currently, CSX carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CSX’ disappointing price performance is not limited to the post-fourth-quarter earnings release. Over the past six months, shares of CSX have gained 0.2%, underperforming the 2.7% rise of the industry it belongs to.
Six-Month Price Comparison
Image Source: Zacks Investment Research
Q4 Performances of Other Transportation Companies
Delta Air Lines DAL reported fourth-quarter 2024 earnings (excluding 56 cents from non-recurring items) of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.76. Earnings increased 44.5% on a year-over-year basis due to low fuel costs.
DAL’srevenues of $15.56 billion surpassed the Zacks Consensus Estimate of $14.99 billion and increased 9.4% on a year-over-year basis, driven by strong holiday travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.44 billion, up 5.7% year over year. Passenger revenues, which accounted for 82.4% of total revenues, increased 5% year over year at $12.82 billion.
J.B. Hunt Transport Services (JBHT) reported fourth-quarter 2024 earnings per share of $1.53, which fell short of the Zacks Consensus Estimate of $1.62. However, the bottom line increased 4.1% on a year-over-year basis.
JBHT’s total operating revenues of $3.15 billion narrowly beat the Zacks Consensus Estimate of $3.13 billion but declined 4.8% year over year. The decline was mainly due to lower fuel surcharge revenues and yield pressure in its Intermodal segment.
JBHT’s fourth-quarter 2024 operating revenues of $2.78 billion, excluding fuel surcharge revenue, decreased 2% from the year-ago reported quarter. Total operating income for the reported quarter increased 2% year over year to $207 million.
Zacks Names #1 Semiconductor Stock
It’s only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it’s positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CSX Corporation (CSX) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
