Seeking Alpha

CSX Corporation (CSX)

  • Fri, Oct. 9, 10:00 AM
    • Federal investigators say a CSX (NYSE:CSX) train accident in West Virginia was caused by fault rail which wasn't found in two inspections.
    • The determination resulted from a probe by the Federal Railroad Administration.
    • The CSX accident in February created a huge fireball from ignited crude oil and originally drew criticism toward the railroad company.
    | Fri, Oct. 9, 10:00 AM | 3 Comments
  • Thu, Oct. 8, 2:14 PM
    • Railcar manufacturer stocks are ripping strong gains
    • Leading the charge is American Railcar Industries ARII with a 15.7% gain, while Greenbrier (GBX +10.1%), FreightCar America (RAIL +5.9%), and Trinity Industries (TRN +4.3%) are also in favor.
    • Railroad stocks are also solidly ahead with Norfolk Southern (NSC +1.9%), CSX (CSX +2.3%), Union Pacific (UNP +1.5%), Genesee & Wyoming (GWR +2.2%), and Kansas City Southern (KSU +1.6%) all continuing an uptrend for the week.
    • The strong sector move flies in the face of some analysts who have called for a downturn. A strong move higher by oil has helped to bring in some buyers.
    • Previously: Not time to buy railroads, Barclays says in downgrading UNP, NSC (Oct. 05 2015)
    | Thu, Oct. 8, 2:14 PM | 13 Comments
  • Thu, Oct. 8, 9:08 AM
    • CSX (NYSE:CSX) declares $0.18/share quarterly dividend, in line with previous.
    • Forward yield 2.54%
    • Payable Dec. 15; for shareholders of record Nov. 30; ex-div Nov. 25.
    | Thu, Oct. 8, 9:08 AM | Comment!
  • Mon, Oct. 5, 7:19 PM
    • Union Pacific (NYSE:UNP) and Norfolk Southern (NYSE:NSC) are downgraded at Barclays, citing high inventory levels, contracting energy capex and a strong U.S. dollar.
    • Barclays warns investors keen on acquiring the shares of quality companies while they seem cheap that it is “too early to get bullish on transports”; while investors are aware of North American industrial headwinds, the expectation of positive rail volume growth due to easy comps in 2016 may remain unmet.
    • The firm likes UNP's long-term potential, but says mix erosion and a management team focused on reducing cost point to less robust growth outcomes in the near-term drives its downgrade to Equal Weight from Overweight.
    • For NSC, the firm says continued service challenges now appear to be driving competitive intermodal share loss to CSX, on top of fuel revenue and coal headwinds, leading to the downgrade to Underweight from Equal Weight.
    • At the same time, Cowen analysts cut 2016 earnings estimates for the rails, believing that many of the headwinds facing certain commodities will persist in the near to intermediate term; stock price targets are lowered for UNP, NSC, CNI, CP, CSX and KSU (
    • Earlier: Barclays abandons bull call on Union Pacific
    | Mon, Oct. 5, 7:19 PM | 21 Comments
  • Wed, Sep. 30, 6:31 PM
    • Shares of railroad operators rose today as Goldman Sachs upgraded the sector to Attractive from Neutral, saying rail volumes continue to contract but the rate of change has begun to improve, which the firm sees as an early inflection indicator.
    • The negatives in the rails appear well known as the sector has been under selling pressure since peaking in Q4 2014, Goldman says, believing the negative EPS revisions cycle for rails is over and that investor expectations now are achievable.
    • The firm sees earnings as a catalyst for sector performance and thinks carloads will grow again in 2016 with 4% Y/Y growth in intermodal.
    • Goldman upgraded Canadian Pacific (NYSE:CP) to Buy from Neutral and reiterated its Buy rating on Union Pacific (NYSE:UNP); it sees upside potential for Canadian National Railway (NYSE:CNI), CSX, Kansas City Southern (NYSE:KSU) and Norfolk Southern (NYSE:NSC) but keeps Neutral ratings on expectations the stocks will trade in-line with its broader transportation coverage universe.
    | Wed, Sep. 30, 6:31 PM | 9 Comments
  • Mon, Sep. 28, 7:12 AM
    • Bank of America Merrill Lynch adds CSX (NYSE:CSX) to its selective US 1 List.
    • The valuation nod from BAML arrives with CSX trading on the low end of its 52-week range, $26.53 (Friday close) vs. $24.47 to $37.99 over the last year.
    | Mon, Sep. 28, 7:12 AM | 1 Comment
  • Thu, Sep. 24, 2:36 PM
    • U.S. rail traffic fell 2.5% to 566,734 carloads for the week reported on September 23.
    • Grain was the commodity group with the largest traffic jump, while metallic ores/metals and petroleum products showed the sharpest drops.
    • Intermodal traffic was up 0.6% during the week.
    • YTD cumulative rail traffic is down 4.4% to 10.304M carloads.
    • Railroad stocks: UNP, NSC, CSX, CNI, ARII, GBX, CP, KSU, CNI, WAB, TRN.
    | Thu, Sep. 24, 2:36 PM | 19 Comments
  • Wed, Sep. 9, 1:15 PM
    • CSX (CSX +0.6%) is higher despite issuing a tepid outlook, saying Q3 freight volumes are trending below the company's expectations and will remain challenging through Q4 and beyond.
    • CSX exec Fredrik Eliasson tells a Cowen transporation conference that the railroad's overall volume YTD is down ~2%, with both domestic coal and merchandise markets tracking slightly below the company's original Q3 expectations.
    • CSX now expects full-year EPS growth in the mid-single digits, vs. a previous outlook for mid- to high-single digits, citing YTD coal freight volumes down 17% Y/Y and difficulties in the coal market that are expected to continue in Q4.
    | Wed, Sep. 9, 1:15 PM | 2 Comments
  • Tue, Sep. 8, 4:43 PM
    • Jeff Smisek, United Airlines' (NYSE:UAL) CEO since 2010 and chairman since 2012, has stepped down from both roles.
    • Oscar Munoz, until now the COO of rail service provider CSX and a United director, is United's new CEO, effective immediately. Henry L. Meyer, United's lead independent director, has been named non-executive chairman.
    • United's EVP of communications and government affairs and its SVP of corporate and government affairs have also stepped down. The departures are tied to a "federal investigation associated with the Port Authority of New York and New Jersey."
    • UAL -0.4% AH.
    | Tue, Sep. 8, 4:43 PM | 14 Comments
  • Thu, Sep. 3, 8:03 AM
    • U.S. railroad and intermodal traffic fell 0.8% Y/Y to 2,270,327 carloads for the month of August.
    • Commodity groups posting an increase were miscellaneous, grain mill products, and motor vehicles. Traffic was lower for the metallic ores, petroleum, and coal groups.
    • YTD total combined railroad traffic -1% to 18.514M carloads. Intermodal volume is outpacing carload traffic.
    • The AAR is optimistic over the back half of the year.
    • "We're optimistic that the economy will continue to grow. Demand for rail service should continue to grow with it," said an AAR exec.
    • Railroad stocks: UNP, NSC, CSX, CNI, ARII, GBX, CP, KSU, CNI, WAB, TRN.
    | Thu, Sep. 3, 8:03 AM | 10 Comments
  • Thu, Aug. 27, 3:58 PM
    • Kansas City Southern (KSU +3.9%) is upgraded to Hold from Sell at Stifel, believing the stock has been sufficiently beaten down and is now fully valued.
    • The firm says its previous rating had been based on poor company guidance related to overly optimistic expectations in oil, auto and intermodal, but the story has fully played out and KSU eventually could become "interesting" as those stories turn around.
    • Railroads are broadly higher today: CSX +4.9%, NSC +5.1%, UNP +3.2%, GWR +6.6%, CNI +3.1%, CP +5.5%.
    • Earlier: Stifel Nicolaus sees upside for CSX
    | Thu, Aug. 27, 3:58 PM | 1 Comment
  • Thu, Aug. 27, 10:49 AM
    • U.S. railroad traffic increased 0.4% Y/Y to 567,943 carloads for the week ending August 22.
    • Commodity groups posting an increase were miscellaneous, farm products, and motor vehicles. Traffic tailed off for metallic ores, petroleum, and coal.
    • YTD total combined railroad traffic -1% to 17.938M carloads.
    • Railroad stocks: UNP, NSC, CSX, CNI, ARII, GBX, CP, KSU, CNI, WAB, TRN.
    | Thu, Aug. 27, 10:49 AM | 21 Comments
  • Thu, Aug. 27, 8:13 AM
    • CSX Corporation (NYSE:CSX) is upgraded at Stifel Nicolaus to a Buy rating from Hold.
    • Stifel cited improved operational results at the railroad company in making its bullish call.
    • CXS +0.5% premarket to $26.50.
    | Thu, Aug. 27, 8:13 AM | 1 Comment
  • Tue, Aug. 25, 10:43 AM
    • Goldman Sachs analysts say the U.S. stock market correction has many more parallels with 1998 than 2008, which “suggest[s] a rebound ahead,” while predicting the S&P 500 will rise by 11% from current levels to reach 2,100 by year's end.
    • The S&P fell 19% between July and August 1998, but "ultimately, the U.S. economy was relatively unaffected by overseas financial market gyrations in 1998, and we believe a similar situation will occur in 2015," Goldman says.
    • The correlation between U.S. economic growth and Chinese growth is relatively low, Goldman says, estimating that a one percentage point drop in Chinese growth would translate into a 0.06 pp reduction in U.S. GDP.
    • The best strategy for U.S. consumers, the bank advises, is to hold companies with high domestic revenues and avoid companies with high foreign sales.
    • Goldman's list of the 25 most oversold stocks with high U.S. sales exposure: KMX, M, WFM, CHK, SWN, RRC, COG, PXD, OKE, MPC, NAVI, ETFC, LNC, BXP, KEY, RF, DFS, ANTM, CSX, NSC, UNP, JBHT, FSLR, ADS, PAYX
    | Tue, Aug. 25, 10:43 AM | 41 Comments
  • Mon, Aug. 10, 6:54 AM
    • A majority of railroads will fall short of meeting a deadline of the end of the year to install PTC technology, warns the Federal Railroad Administration.
    • Companies could be assessed "substantial" fines if the deadline to install positive train control systems isn't completed on time.
    • Related stocks: CSX, GWR, KSU, CP, UNP, CSX, CNI, PWX, OTCPK:PRRR.
    | Mon, Aug. 10, 6:54 AM | 24 Comments
  • Fri, Aug. 7, 5:54 PM
    • Rail traffic fell in July from a year ago as an increase in container volumes could not offset a sharp decline in oil and coal shipments, according to the latest monthly report from the Association of American Railroads.
    • The number of carloads carrying oil and petroleum products fell 13.6% Y/Y to 67.9K last month, while coal volumes sank 12.5%; container shipments rose 3.8% to 1.2M, and traffic overall fell 1.8% to 2.7M.
    • "Railroads are overexposed, relative to the economy in general, to the energy sector,” the AAR says in its traffic report.
    • Relevant tickers: CSX, NSC, UNP, KSU, BRK.A, BRK.B
    | Fri, Aug. 7, 5:54 PM | 25 Comments
Company Description
CSX Corporation operates as a transportation supplier. It provides rail-based transportation services including traditional rail service and the transport of intermodal containers and trailers.
Sector: Services
Industry: Railroads
Country: United States