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.
| 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!
| 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%.
| 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.
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:
| 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 |
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.
