/CSX%20Corp_%20railcar-by%20Jonathan%20Weiss%20via%20Shutterstock.jpg)
CSX Corporation (CSX), headquartered in Jacksonville, Florida, is a transportation company offering rail-based freight transportation services across a network of approximately 20,000 route miles. Valued at $62.2 billion by market cap, the company provides rail, intermodal, domestic container-shipping, barging, and contract logistics services around the world. The rail giant is expected to announce its fiscal fourth-quarter earnings for 2024 after the market closes on Thursday, Jan. 23.
Ahead of the event, analysts expect CSX to report a profit of $0.44 per share on a diluted basis, down 2.2% from $0.45 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect CSX to report EPS of $1.84, down marginally from $1.85 in fiscal 2023. However, its EPS is expected to rise 9.8% year over year to $2.02 in fiscal 2025.
CSX stock has underperformed the S&P 500’s ($SPX) 23.7% gains over the past 52 weeks, with shares down 7.1% during this period. Similarly, it underperformed the Industrial Select Sector SPDR Fund’s (XLI)16.4% gains over the same time frame.
CSX's underperformance is due to stagnating sales growth, intensified competition, and declining revenue per unit. Moreover, factors like lower coal demand, competitive trucking industry, lower natural gas prices, hurricane-related disruptions, and revenue decline projections have raised concerns among investors.
On Oct. 16, CSX reported its Q3 results and its shares closed down more than 6% in the following trading session. Its EPS of $0.46 missed Wall Street expectations of $0.48. The company’s revenue was $3.6 billion, missing Wall Street forecasts of $3.7 billion.
Analysts’ consensus opinion on CSX stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 24 analysts covering the stock, 16 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and seven give a “Hold.” CSX’s average analyst price target is $38.59, indicating a potential upside of 20% from the current levels.
