Why Is CSX (CSX) Up 2.5% Since Last Earnings Report?

A month has gone by since the last earnings report for CSX (CSX). Shares have added about 2.5% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is CSX due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Earnings Beat at CSX in Q2

Quarterly earnings per share of 44 cents beat the Zacks Consensus Estimate of 42 cents but decreased 10.2% on a year-over-year basis on the back of lower revenues.

Total revenues of $3.57 million missed the Zacks Consensus Estimate of $3.58 million and declined 3.4% year over year. The downside was owing to lower export coal prices, reduced fuel surcharge, and a decline in merchandise volume. These were partially offset by higher merchandise pricing, an increase in other revenue, and growth in intermodal volume.

Second-quarter operating income decreased 11% year over year to $1.28 billion. CSX’s operating margin of 35.9% decreased 320 basis points year over year.

Total expenses were up 2% year over year to $2.29 billion. Overall volumes rose marginally by 0.1% year over year, but revenue per unit decreased 4% year over year.

Q2 Segmental Performance of CSX

Merchandise revenues fell 2% year over year to $2.25 billion in the reported quarter. Merchandise volumes fell 2% year over year to $670 million. Segmental revenue per unit remained flat year over year.

Intermodal revenues decreased 3% year over year to $491 million. Segmental volumes increased 2% while revenue per unit decreased 5% year over year.

Coal revenues fell 15% year over year to $477 million in the reported quarter Coal volumes increased 1% year over year, while segmental revenue per unit fell 16% year over year.

Trucking revenues totaled $211 million , down 5% year over year. Other revenues grew 20% year over year to $138 million in the reported quarter.

Liquidity

CSX exited the second quarter of 2025 with cash and cash equivalents of $387 million compared with $1.14 billion at the end of the prior quarter. Long-term debt of $18.5 billion remained flat sequentially. CSX generated $635 million of cash from operating activities in the reported quarter.

2025 Guidance of CSX

For 2025, CSX still expects total volume growth. For the second half of 2025, CSX now expects lesser year-over-year revenue headwinds from lower export coal benchmarks and diesel prices.

CSX will continue to focus on operational excellence, labor productivity, and efficiency initiatives. Capital expenditures are expected to be roughly flat year over year, excluding hurricane rebuild spending.

Continua a leggere## How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

Currently, CSX has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, CSX has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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This article originally published on Zacks Investment Research (zacks.com).

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