Latest news with #CSX
Yahoo
30 minutes ago
- Business
- Yahoo
CSX Corporation (CSX): 'I Am In Charge Of The Rails,' Says Jim Cramer
We recently published . CSX Corporation (NASDAQ:CSX) is one of the stocks Jim Cramer recently discussed. CSX Corporation (NASDAQ:CSX) is a major American railroad company that has been at the center of the news this July. Earlier in the month, Cramer and co-host David Faber discussed whether the railroad industry in the US could enter a period of mergers due to the different conditions under the Trump administration. Right on cue, a report surfaced that railroad giant Union Pacific would either acquire CSX or Norfolk Southern. In this appearance, Cramer recalled a recent conversation with Faber for a potential acquisition: '[On Cowen taking it to buy] David, don't you think that one of these is going to merge? [Mimicks David Faber with arms crossed and a grim look with pursed lips] And that means yes. FiledIMAGE/ Earlier, the CNBC TV host wondered whether Norfolk Southern or CSX would be vulnerable to an acquisition: 'I think that Norfolk Southern could be vulnerable. I'd like to think that Joe Hinrichs at CSX, no.' While we acknowledge the potential of CSX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
7 hours ago
- Business
- Yahoo
CSX profits fall on lower revenue, higher costs
CSX's second-quarter profits slumped as unfavorable changes in traffic mix drove a revenue decline and costs rose amid congestion and detours related to a pair of main line outages. But executives said they were encouraged by the pace of the railroad's (NASDAQ: CSX) operational recovery during the quarter, which produced improvements in on-time performance. 'We are proud of how our network performance has bounced back from the challenges of the first quarter,' Chief Executive Joe Hinrichs told investors and analysts on the railroad's earnings call Wednesday. The railroad's operating income declined 11%, to $1.28 billion, as revenue decreased 3%, to $3.57 billion. Earnings per share declined 10%, to 44 cents. CSX's operating ratio, including its trucking operations, was 64.1, a 3.2-point increase from a year ago as expenses rose 2%. Overall quarterly volume was flat. Intermodal was up 2%, merchandise declined 2%, and coal volume increased 1%. International intermodal volume grew during the quarter, while domestic volume was stable. In the merchandise segment, growth in metals, minerals, and agricultural shipments were not enough to offset declines in automotive, forest products, chemicals, and fertilizer traffic. 'Many of the industrial markets we serve continue to face challenges with uncertainty around tariffs, trade, interest rates, and the overall direction of the economy,' Chief Commercial Officer Kevin Boone said. CSX still expects overall volume growth this year thanks to dozens of industrial development projects coming on line and conversion of freight from highway to intermodal, Boone said. CSX also is encouraged by the progress of its new Southeast Mexico Express interline intermodal service launched with Canadian Pacific Kansas City in December via their new interchange at Myrtlewood, Ala., on the former Meridian & Bigbee short line. The Howard Street Tunnel clearance project remains on schedule toward completion early in the fourth quarter, while related bridge clearance work in Baltimore is on pace for completion in the second quarter of 2026. The tunnel will reopen when work is complete, allowing CSX to end daily detours around Baltimore. The tunnel and bridge clearance work will open up the carrier's I-95 corridor for double-stack intermodal service for the first time and allow Baltimore-Midwest stack traffic to take the direct route via the former Baltimore & Ohio main line, rather than the current roundabout routing via Selkirk, N.Y., on the former New York Central Water Level Route. Work to reopen the hurricane-damaged Blue Ridge Subdivision – the former Clinchfield Railroad in rugged western North Carolina and eastern Tennessee – is expected to be completed on schedule in the fourth quarter, as well. 'We are very pleased with the progress that has been made at our Howard Street Tunnel and Blue Ridge rebuild projects. We expect completion in the fourth quarter, which will remove two key constraints from our network,' Hinrichs said. 'Finishing these two projects will open back up two of our four north-south routes, and … we're excited about removing the last impediment to double stack intermodal on the I-95 corridor.' A string of harsh weather, combined with the main line outages, led to congestion after the Feb. 1 shutdown of the Howard Street Tunnel. CSX's operations accelerated as the quarter went on, with average train speed increasing 8% from April through June and dwell declining by 18%. The number of cars online — a key congestion metric — declined 10% as the quarter progressed. 'Our recovery is a true testament to the hard work and dedication of every railroader at CSX,' Chief Operating Officer Mike Cory said. Intermodal trip-plan compliance held steady at 90% compared to the first quarter but was down 4 points compared to a year ago. Merchandise trip-plan compliance of 75% was 6 points higher than the first quarter but 5 points lower than a year ago. Customer switch data of 94% was flat compared to last year's second quarter and a 1-point improvement over the first quarter. The on-time performance figures are not yet where CSX wants them, Cory says, but he expects ongoing improvement, particularly after the Howard Street and Blue Ridge projects wrap up and allow the railroad to end the related detours of up to 22 trains per day. 'While these projects unlock significant capacity for the entire network, we are also upgrading our capacity and throughput at our yard in Indianapolis, with the extension of the hump pullback,' Cory said of Avon Yard in Indiana, one of five hump yards on the system. 'While this project is small in nature relative to the other two, it'll give us the ability to hump more cars … at a very critical yard in our network.' Despite the service issues, CSX's customers gave the railroad the highest marks ever in a second-quarter internal survey, Boone said. And Hinrichs added regulators received zero complaints from shippers despite the impact of congestion. Subscribe to FreightWaves' Rail e-newsletter and get the latest insights on rail freight right in your look: Weaker coal, carloads hit CSX earnings As merger talk heats up, deep bench will advise rail regulator Analysis: What a Union Pacific – Norfolk Southern merger would look like BNSF aims to grow carload traffic with rail service upgrades The post CSX profits fall on lower revenue, higher costs appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10 hours ago
- Business
- Yahoo
CSX (CSX) Beats Q2 Earnings Estimates
CSX (CSX) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.76%. A quarter ago, it was expected that this freight railroad would post earnings of $0.37 per share when it actually produced earnings of $0.34, delivering a surprise of -8.11%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. CSX, which belongs to the Zacks Transportation - Rail industry, posted revenues of $3.57 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.25%. This compares to year-ago revenues of $3.7 billion. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. CSX shares have added about 9.2% since the beginning of the year versus the S&P 500's gain of 7.3%. What's Next for CSX? While CSX has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for CSX was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.44 on $3.6 billion in revenues for the coming quarter and $1.65 on $14.25 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Rail is currently in the top 15% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Union Pacific (UNP), is yet to report results for the quarter ended June 2025. The results are expected to be released on July 24. This railroad is expected to post quarterly earnings of $2.89 per share in its upcoming report, which represents a year-over-year change of +5.5%. The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level. Union Pacific's revenues are expected to be $6.11 billion, up 1.7% from the year-ago quarter. 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 Union Pacific Corporation (UNP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
11 hours ago
- Business
- Globe and Mail
CSX CEO signals he would be open to merger talks as profit falls 14% in the second quarter
CSX railroad's CEO signaled he would be open to merger conversations if a deal would boost shareholder value and help the business grow. As merger rumors swirl in the industry, the Jacksonville, Florida-based railroad said Wednesday that its second-quarter profit dipped 14% to $829 million, or $0.44 per share. That's down from $963 million, or $0.49 per share, a year ago. The railroad continues working on two major construction projects that are causing delays and added costs, but the results were in line with what the analysts surveyed by FactSet Research predicted. CEO Joe Hinrichs wouldn't comment directly on the merger rumors and he said that CSX is focused on improving its operations. But Hinrichs also said his railroad would remain open to any possibilities that would help boost shareholder value. The Associated Press reported last week that Union Pacific was in merger talks with Norfolk Southern. Hinrichs wouldn't say if CSX is discussing a merger with anyone. 'While we are confident in CSX's path forward, we welcome all opportunities that will allow us to deliver value for our shareholders, drive thoughtful growth, and serve our customers better,' Hinrichs said. If merger actions heat up in the industry, CSX could be a target for one of the western railroads trying to build a transcontinental network. But the prospects for any deals among the major freight railroads remain uncertain because regulators might be reluctant to approve them. Hinrichs said he thinks there are opportunities to attract new business and prosper by working together with other railroads today. One example is the new service that CSX and CPKC railroads recently announced to deliver shipments that CPKC picks up in Mexico and have CSX deliver them in the southeast United States. CSX is in the middle of expanding a key tunnel in Baltimore, so it will be able to carry double-stacked shipping containers, and the railroad is completing repairs related to Hurricanes Helene and Milton. Those projects are adding about $10 million in additional costs every month because of all the shipments that need to be re-routed and constraining the railroad's capacity, so it will be a relief when they are done in the fourth quarter. Hinrichs said the railroad is operating much more fluidly than it was in the first quarter of this year when the results disappointed. The railroad also eliminated about 125 management jobs earlier this month in a restructuring. Hinrichs said the railroad will take a $15 million to $20 million charge for that in the third quarter, but those cuts will save CSX about $30 million in expenses per year. Edward Jones analyst Jeff Windau said in a research note that the railroad had a decent quarter even though its service suffered while re-routing so many shipments around the construction. CSX executives said it remains hard to predict consumer sentiment that drives so much of the economy right now, but if Donald Trump's tariff policy and interest rates become more certain in the second half of the year that should help consumers and businesses feel more comfortable spending and expanding their operations. 'We're really looking forward to these trade deals and providing some certainty,' Hinrichs said. 'The tax bill provides certainty now for businesses. And hopefully we can get an interest rate cut or two in the second half which will also help.' CSX is one of the major freight railroads that serves the eastern United States and competes with Norfolk Southern.
San Francisco Chronicle
12 hours ago
- Business
- San Francisco Chronicle
CSX profit falls 14% in the second quarter even though rail shipments were flat
CSX railroad's profit slipped 14% in the second quarter even though the volume of shipments it delivered remained flat as it continued working on two major construction projects on its network. The Jacksonville, Florida-based railroad said Wednesday it earned $829 million, or $0.44 per share. That's down from $963 million, or $0.49 per share, a year ago. That's in line with what the analysts surveyed by FactSet Research predicted. CSX's latest earnings report comes as rumors swirl in the industry about t he possibility that a merger between two of the country's largest freight railroads might be proposed. The Associated Press reported last week that Union Pacific was in merger talks with Norfolk Southern. CEO Joe Hinrichs said he doesn't want to comment on the rumors and that CSX is focused on improving its operations, but he said his railroad would remain open to any possibilities that would help boost shareholder value. 'While we are confident in CSX's path forward, we welcome all opportunities that will allow us to deliver value for our shareholders, drive thoughtful growth, and serve our customers better,' Hinrichs said. If merger actions heat up in the industry, CSX could be a target for one of the western railroads trying to build a transcontinental network. But the prospects for any deals among the major freight railroads remain uncertain because regulators might be reluctant to approve them. Hinrichs emphasized that he thinks there are opportunities to attract new business and prosper by working together with other railroads today. One example is the new service that CSX and CPKC railroads recently announced to deliver shipments that CPKC picks up in Mexico and have CSX deliver them in the southeast United States. CSX is in the middle of expanding a key tunnel in Baltimore, so it will be able to carry double-stacked shipping containers, and the railroad is completing repairs related to Hurricanes Helene and Milton. But Hinrichs said the railroad is operating much more fluidly than it was in the first quarter of this year when the results disappointed. The railroad is also restructuring its management jobs. CSX executives said it remains hard to predict consumer sentiment that drives so much of the economy right now, but if Donald Trump's tariff policy becomes more certain in the second half of the year that should help consumers and businesses feel more comfortable spending and expanding their operations.
