CSX Corporation


SKU: CSX Category:


CSX Corporation’s performance in the second quarter was largely disappointing with revenues below par and earnings in line with expectations. The only silver lining was the successful performance of its merchandise sector. As per the management, its network is functioning well, and the company’s initiatives have made a significant contribution to distinguishing their railroad. Operating income and earnings per share fell in the quarter. In such a volatile macroeconomic situation, their team’s ability to deliver 3% merchandise volume growth is a positive sign. In the second quarter, CSX moved more than 1.5 million carloads, driven by a 3% volume increase in merchandise and a 4% volume increase in coal. Their margins remained robust, with an operating ratio below 60%, taking into account the impact of the trucking business for quality carriers. The second quarter also saw an average velocity of 17.7 miles per hour. Dwell duration increased. The success rate of intermodal trip plans was 96%, up 6 percentage points from the previous year, while the success rate of carload trip plans was 84%. We give CSX Corporation a ‘Hold’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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