Yahoo Finance CSX Gears Up to Report Q4 Earnings: What's in the Cards?
CSX Corporation CSX is scheduled to report fourth-quarter 2022 results on Jan 25, after market close.
CSX has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 4.39%.
CSX Corporation Price and EPS Surprise
CSX Corporation price-eps-surprise | CSX Corporation Quote
Let’s see how things are shaping up for CSX this earnings season.
Q4 Expectations
The Zacks Consensus Estimate for CSX’s fourth-quarter 2022 revenues is pegged at $3.74 billion, indicating 9.22% growth year over year. The top line is likely to have been aided by strength across merchandise, intermodal and coal revenues.
The Zacks Consensus Estimate for fourth-quarter Merchandise revenues is pegged at $2.13 billion, indicating 9.9% growth from the year-ago reported figure. Favorable pricing and higher fuel surcharge are likely to have boosted the segmental revenues.
The Zacks Consensus Estimate for fourth-quarter Intermodal revenues is pegged at $590 million, indicating 7.1% growth from the year-ago reported figure. The strength in the international business is expected to have aided the segmental revenues.
The Zacks Consensus Estimate for fourth-quarter Coal revenues is pegged at $595 million, indicating 13.8% growth from the year-ago reported figure. Benefits from solid export benchmarks are expected to have aided the growth.
On the flip side, supply-chain disruptions, including labor and equipment shortages, are expected to have hurt CSX’s fourth-quarter performance. Rising fuel expenses continue to bother the company’s bottom line. The Zacks Consensus Estimate for CSX’s fourth-quarter 2022 earnings has been revised downward by 6% in the past 90 days.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for CSX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CSX has an Earnings ESP of -1.06% and a Zacks Rank #3.
Highlights of Q3
CSX's third-quarter 2022 earnings of 52 cents per share beat the Zacks Consensus Estimate of 49 cents and improved 20.9% year over year. Total revenues of $3,895 million outperformed the Zacks Consensus Estimate of $3,757.1 million. The top line increased 18.3% year over year on the back of higher fuel surcharge, pricing gains and increase in volumes, storage and other revenues. Overall revenues per unit increased 27%.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat their fourth-quarter 2022 earnings:
American Airlines AAL has an Earnings ESP of +16.71% and a Zacks Rank #2. AAL will release results on Jan 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Airlines has an expected earnings growth rate of more than 100% for fourth-quarter 2022. AAL delivered a trailing four-quarter earnings surprise of 8.62%, on average.
The Zacks Consensus Estimate for AAL’s fourth-quarter 2022 earnings has been revised upward by more than 100% in the past 90 days.
Copa Holdings, S.A. CPA has an Earnings ESP of +8.05% and a Zacks Rank #3. CPA will release results on Feb 15.
Copa Holdings has an expected earnings growth rate of 89.9% for fourth-quarter 2022. CPA delivered a trailing four-quarter earnings surprise of 48.95%, on average.
The Zacks Consensus Estimate for CPA’s fourth-quarter 2022 earnings has been revised upward by 41.3% in the past 90 days.
Norfolk Southern Corporation NSC has an Earnings ESP of +0.55% and a Zacks Rank #3. NSC will release results on Jan 25.
NSC has an expected earnings growth rate of 9.29% for fourth-quarter 2022. `NSC delivered a trailing four-quarter earnings surprise of 4.06%, on average.
NSC has a long-term expected growth rate of 8.96%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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
Norfolk Southern Corporation (NSC) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
