Industrials

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our 12-month price target by $1 to $33 on a forward P/E of 16x our 2025 EPS estimate, a discount to the five-year average of 18x on lower forecasted margins and expected negative impacts on auto shipments due to the UAW strike. We lower our 2023 EPS view to $1.82 from $1.87 and 2024’s to $1.92 from $2.03. We also remove 2025 estimates. Q3 sales fell 8% Y/Y on lower fuel surcharges, reduced intermodal storage revenue, a decline in export coal benchmark prices, and a decrease in intermodal volumes (particularly international), partially offset by higher merchandise yields and coal volume growth. Volume/revenue by segment: Merchandise flat/-1%; Coal +9%/-5%; and Intermodal -7%/-14%. Operating income declined 18% Y/Y. CSX posted Q3 EPS of $0.42, meeting expectations. We

CSX Corp. Announces Third Quarter 2023 Results JACKSONVILLE, Fla., Oct. 19, 2023 — CSX Corp. (NASDAQ: CSX) today announced third quarter 2023 operating income of $1.30 billion compared to $1.58 billion in the prior year period. Net earnings of $846 million, or $0.42 per diluted share, compared to $1.11 billion, or $0.52 per diluted share, in the same period last year. “Over the third quarter, our efforts centered on delivering the reliable customer service that has allowed us to remain resilient and successfully maneuver through mixed markets,” said Joe Hinrichs, president and chief executive officer. “Our merchandise business remained solid, and our coal operations delivered strong volume growth. As we approach year-end, we are proud of the cohesive culture taking shape across our ONE CSX team that is helping to drive positive business results, and we are encouraged to see improving sequential trends in some of our key end markets.”

CSX Posts Q3 EPS of $0.42 on Revenue of $3.57 Billion, Vs CIQ Analyst Consensus of $0.43/Share on Revenue of $3.56 Billion.

CSX (CSX) reported Q3 earnings late Thursday of $0.42 per diluted share, down from $0.52 a year earlier. Analysts polled by Capital IQ expected EPS of $0.43. Revenue for the quarter ended Sept. 30 was $3.57 billion, down from $3.90 billion a year earlier. Analysts surveyed by Capital IQ expected $3.56 billion.

CSX is seeing early signs of freight volumes improving in the fourth quarter. Chief Commercial Officer Kevin Boone says on a call with analysts that most of the rail operator’s markets are improving sequentially, based on October volume trends so far. Agricultural and food products and forest products saw the biggest drop in shipments in the third-quarter as overall volumes are flat year-on-year. While mills, which produce wood products, are still taking downtime, Boone sees improvements in food in the fourth quarter as the Midwest harvest boosts volumes.