CSX (NasdaqGS:CSX) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

CSX Corporation (NasdaqGS:CSX) is scheduled to report Q3 earnings results after markets close for trading on October 21, 2020.

The company is expected to report earnings of $0.93/share on revenue of $2.677 billion. The consensus earnings per share (EPS) of $0.93/share is based on a poll of 24 analysts and represents a decline in eps of −14.2% over the same quarter last year, when the company reported earnings of $1.08/share.

The revenue forecast of $2.677 billion based on a poll of 18 analysts implies a year-over-year (YoY) decline in revenue of −10.2%. Last year the company reported $2.98 billion in revenue for the quarter.

Expected to report EPS contraction of −14.2% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $2,677.01 $2,980.00 −10.2%
EPS $0.93 $1.08 −14.2%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarters.

What are your expectations from CSX Corporation for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.64 $0.65 1.6% Beat
Q1, 2020 $0.95 $1 5.6% Beat
Q4, 2019 $0.96 $0.99 2.6% Beat
Q3, 2019 $1.02 $1.08 6.3% Beat
Q2, 2019 $1.11 $1.08 −2.4% Missed
Q1, 2019 $0.91 $1.02 12.7% Beat
Q4, 2018 $0.99 $1.01 1.7% Beat
Q3, 2018 $0.95 $1.05 10.8% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −1.2%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 22, 2020 $72.43 $71.53 −1.2% Decline
April 22, 2020 $59.48 $61.47 3.3% Increase
January 16, 2020 $74.99 $76.40 1.9% Increase
October 16, 2019 $69.17 $69.78 0.9% Increase

Fundamentals And Technical Analysis

CSX Corporation is currently trading at $80.65/share, up 0.7% for the day. The company is trading at approximately 99.3% of its 52-week high of $81.40/share. The company’s stock price is up 12.7% since the last earnings report and up 1.4% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 59.43 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:CSX Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 21.19 and a forward P/E multiple of 23.01.

CSX Corporation’s current share price also implies a price-to-book (P/B) multiple of 5.05. The following table summarizes some other key fundamental ratios:

Data as of October 19, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $80.65
P/E Ratio 21.2x
P/E Ratio (Fwd) 23.0x
PEG Ratio −2.1
Total Debt / Total Capital 21.5%
Levered Free Cash Flow $3.078 billion
EV / EBITDA 12.8x

Finbox

CSX Corporation is a large-cap stock with a market capitalization of $61.288 billion and a total enterprise value of $75.694 billion. The company operates in the Industrials sector and the Road & Rail industry.

CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services. The company offers rail services; and transportation of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations. It transports chemicals, automotive, agricultural and food products, minerals, fertilizers, forest products, and metals and equipment; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants, as well as exports coal to deep-water port facilities. The company also offers intermodal transportation services through a network of approximately 30 terminals transporting manufactured consumer goods in containers; drayage services, including the pickup and delivery of intermodal shipments; and trucking dispatch services. In addition, it serves the automotive industry with distribution centers and storage locations, as well as connects non-rail served customers through transferring products from rail to trucks, which includes plastics and ethanol. The company operates approximately 20,000 route mile rail network, which serves various population centers in 23 states east of the Mississippi River, the District of Columbia, and the Canadian provinces of Ontario and Quebec, as well as owns and leases approximately 3,561 locomotives. It also serves production and distribution facilities through track connections. CSX Corporation was incorporated in 1978 and is headquartered in Jacksonville, Florida.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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