CSX is set to report Q2 results slightly above estimates, facing challenges in a volatile market.

From Nasdaq: 2024-08-04 22:16:31

CSX Stock (NYSE: CSX) is set to report Q2 2024 results on August 5, with revenues expected at $3.7 billion and earnings at $0.49 per share, slightly above consensus estimates. Despite a history of mixed returns in recent years, CSX’s stock is currently trading at $35, close to its estimated valuation of $37 per share.

In a volatile market, CSX faces uncertainty with high oil prices and interest rates affecting its performance. The company’s Q1 2024 revenue dropped by 1% year-on-year, with volume up by 3% but average revenue per unit down by 4%. Despite lower revenues and margin contraction, CSX expects sales to grow in low to mid-single digits in 2024.

CSX’s performance in the coming quarter may benefit from volume gains in merchandise, although coal segment headwinds are expected due to the Baltimore bridge collapse impact. The company anticipates overall cost per employee to be favorable, supporting its overall margin. While its stock appears fully valued, peer comparisons can provide additional insights into CSX’s competitiveness in the market.



Read more at Nasdaq: What To Expect From CSX’s Q2?