CSX (NASDAQ:CSX) Issues Earnings Results

Key Points

• CSX beat earnings expectations for the quarter, reporting EPS of $0.54 versus the $0.52 consensus estimate. Revenue also came in ahead of forecasts at $3.94 billion compared with $3.89 billion expected.
• The stock traded higher after the report, rising to $49.93 during Wednesday trading. CSX is near its 12-month high of $51.28 and has gained support from analysts, with a consensus rating of “Moderate Buy” and an average target price of $49.33.
• CSX continued its dividend program, declaring a quarterly payout of $0.14 per share, or $0.56 annually. That implies a dividend yield of 1.1% and a payout ratio of 34.36%.

CSX (NASDAQ:CSX - Get Free Report) issued its quarterly earnings data on Wednesday. The transportation company reported $0.54 EPS for the quarter, topping the consensus estimate of $0.52 by $0.02, FiscalAI reports. CSX had a return on equity of 24.47% and a net margin of 21.55%.The firm had revenue of $3.94 billion during the quarter, compared to the consensus estimate of $3.89 billion.

CSX Price Performance

Shares of NASDAQ CSX traded up $0.04 during midday trading on Wednesday, hitting $49.93. 17,007,830 shares of the company's stock were exchanged, compared to its average volume of 13,098,747. The company has a current ratio of 0.97, a quick ratio of 0.83 and a debt-to-equity ratio of 1.34. The business's fifty day moving average price is $47.30 and its two-hundred day moving average price is $42.87. The company has a market cap of $92.78 billion, a price-to-earnings ratio of 30.63, a PEG ratio of 2.47 and a beta of 1.21. CSX has a 12-month low of $31.80 and a 12-month high of $51.28.

CSX Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Monday, August 31st will be given a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Monday, August 31st. CSX's dividend payout ratio (DPR) is 34.36%.

Wall Street Analysts Forecast Growth

CSX has been the topic of several analyst reports. New Street Research set a $49.00 target price on CSX in a research report on Thursday, April 23rd. Wells Fargo & Company lifted their price objective on shares of CSX from $50.00 to $54.00 and gave the stock an "overweight" rating in a report on Wednesday, July 8th. Evercore set a $47.00 price target on shares of CSX in a research report on Thursday, June 25th. The Goldman Sachs Group reiterated a "neutral" rating and set a $41.00 price target (up from $37.00) on shares of CSX in a report on Thursday, April 23rd. Finally, Bank of America reaffirmed a "buy" rating and issued a $53.00 price objective (up from $51.00) on shares of CSX in a research report on Wednesday, June 17th. Seventeen analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $49.33.

Insiders Place Their Bets

In related news, Director John J. Zillmer sold 10,000 shares of the stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $46.45, for a total transaction of $464,500.00. Following the transaction, the director owned 353,714 shares of the company's stock, valued at approximately $16,430,015.30. This trade represents a 2.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Kevin S. Boone sold 136,708 shares of the firm's stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $46.70, for a total value of $6,384,263.60. Following the transaction, the chief financial officer directly owned 208,622 shares in the company, valued at $9,742,647.40. This trade represents a 39.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. WFA of San Diego LLC purchased a new position in shares of CSX in the second quarter valued at about $28,000. Sunbelt Securities Inc. bought a new position in CSX during the 3rd quarter valued at approximately $67,000. J.Safra Asset Management Corp bought a new position in CSX during the 4th quarter valued at approximately $136,000. McMillan Office Inc. bought a new stake in shares of CSX in the 4th quarter worth approximately $152,000. Finally, Walled Lake Planning & Wealth Management LLC raised its holdings in shares of CSX by 2.7% during the fourth quarter. Walled Lake Planning & Wealth Management LLC now owns 13,235 shares of the transportation company's stock valued at $480,000 after acquiring an additional 346 shares in the last quarter. 73.57% of the stock is owned by hedge funds and other institutional investors.

About CSX

CSX Corporation is a leading North American transportation company that provides rail-based freight services and supply-chain solutions. Its operating subsidiary, CSX Transportation, moves a wide range of goods for customers across multiple industries, using a combination of long-haul rail service, intermodal operations and terminal and yard services. The company focuses on delivering efficient, reliable freight transportation between major production centers, consumption markets and port gateways.

CSX's freight portfolio includes intermodal containers and trailers, bulk commodities, industrial products and specialized unit trains.

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