Tue, Jan. 12, 6:47 PM
- CSX -2.2% AH after beating reduced Q4 earnings estimates while posting a 13% Y/Y revenue decline, as a 32% drop in coal volumes continued to weigh on operations.
- CSX says Q4 pricing gains were more than offset by the impact of lower fuel recovery, a 6% volume decline and continued transition in the company's business mix.
- CSX says it expects lower EPS during FY 2016 from last year's $2.00 but does not offer specifics, citing projected negative global and industrial market trends.
- The company says it "will continue to be rigorous about efficiency, resources and service quality in order to maximize shareholder value and achieve a mid-60s operating ratio longer term."
Tue, Jan. 12, 4:06 PM
- CSX (NASDAQ:CSX): Q4 EPS of $0.48 beats by $0.02.
- Revenue of $2.78B (-12.9% Y/Y) misses by $80M.
- Shares -2%.
Mon, Jan. 11, 6:57 PM
- Railroad cargo in the U.S. dropped the most in six years in 2015 and the new year's outlook - for the industry, as well as the U.S. economy - is troubling, according to a new report from Bank of America.
- "Rail data may be signaling a warning for the broader economy," BofA says, noting that carloads have declined more than 5% Y/Y in each of the past 11 weeks, and "the current period of substantial and sustained weakness, including last week’s -10.1% decline, has not occurred since 2009."
- BofA says its analysis of the past 30 years shows all such steep declines in rail carloads preceded or were accompanied by an economic slowdown.
- Much of the decline is easily traced to the sharp drop in the amount of oil hauled on U.S. railways as refineries swallow more foreign supplies in the face of falling domestic crude output; Genscape says rail deliveries to U.S. Atlantic coast terminals continued to drop to the end of the year and the spot market for crude delivered by rail from North Dakota’s Bakken region “is at a near standstill.”
- But the BofA team thinks the slowdown is spreading to more consumer-oriented segments, citing a 1.7% Q4 Y/Y drop in intermodal carloads typically related to consumer goods after rising 1% in Q1 2015 and 3.6% in Q2.
- Relevant tickers: UNP, CSX, KSU, NSC, CP, CNI, GWR, BRK.A, BRK.B
Mon, Jan. 11, 5:35 PM
Dec. 22, 2015, 9:19 AM
- Crumbling oil prices haven't helped the Dow Jones Transportation Average (NYSEARCA:IYT) - down 19% year-to-date vs. the DJIA's (NYSEARCA:DIA) 3% loss.
- Oppenheimer technician Ari Wald isn't seeing a bottom though. He expects the Transports to break below 7,400 support (last night's close was 7,415), and with it the DJIA to slip to the 16K area (last night's close 17,252).
- Transport buys: JBLU, MATX, ALK, LUV, DAL, UAL
- Transport sells: CHRW, LSTR, JBHT, KSU, NSC, CAR, KEX, CSX
Dec. 11, 2015, 4:45 PM
- Select railroad stocks were an island in the storm today after Bloomberg reported that Berkshire Hathaway's BNSF Railway (BRK.A, BRK.B) is considering making a competing bid for Norfolk Southern (NYSE:NSC).
- While BNSF Executive Chairman Matt Rose does not favor more North American rail mergers, he tells Bloomberg the company would not sit on the sidelines in any fresh dealmaking: “If there is consolidation to be had, we would participate as well.”
- Rose’s remarks raise the prospect of another suitor for NSC, which already has turned down Canadian Pacific (NYSE:CP); CSX, NSC’s larger rival in the eastern U.S., would be “very much in play” if CP succeeded with its effort, Rose says, noting that “we’ve never in this industry just done one merger" at a time.
- In today's trade: NSC +2%, CP -2%, CSX +4.1%, UNP -0.2%, KSU -0.1%, CNI -2.1%.
Dec. 9, 2015, 4:04 PM
- CSX Corporation (NYSE:CSX) announces it will transfer its listing to the Nasdaq from the NYSE after the market closes on December 21.
Dec. 4, 2015, 2:57 PM
- Railroad stocks are broadly lower following Norfolk Southern's (NSC -1.2%) sharp rebuke of Canadian Pacific Railway's (CP -4.5%) takeover bid "at any price" and a BofA Merrill Lynch negative research note on the sector.
- CEO James Squires tells Bloomberg that NSC execs “haven’t talked to a single customer that supports the idea" of merging with CP, and that “our customers’ responses range from highly skeptical to vehemently opposed."
- Citing volume declines and weak trends that look to continue into 2016, BofA downgrades CSX (CSX -1.3%) and Union Pacific (UNP -1.2%) to Neutral from Buy, as the firm remains negative on rails with significant coal exposure, and cuts Kansas City Southern (KSU -1.5%) and Genesee & Wyoming (GWR -5.3%) to Underperform from Neutral; the firm lowers KSU due to its growth premium in an environment of slowing growth and cut GWR due to its commodity exposure.
- BofA reiterates its Buy rating on Canadian National (CNI -1.2%), citing CNI's significantly lower coal exposure, robust intermodal share gains and attractive risk/reward returns.
Dec. 2, 2015, 5:15 PM
- CSX and Kansas City Southern (NYSE:KSU) posted respective showings of -3.7% and -7.1% in today's trade after offering downbeat outlooks at a Credit Suisse industrials conference.
- CSX CFO Frank Lonegro said the company now expects FY 2015 EPS growth of ~3% after issuing guidance in October for annual EPS of $2.00-$2.04, or growth of at least 4%.
- "While we continue to expect to move around 30M tons of export coal for the full year, domestic coal movements have declined more significantly in the fourth quarter than expected," Lonegro said.
- KSU CFO Michael Upchurch said he expects Q4 revenue to decline at a high single-digit percentage rate from a year ago, vs. revenue consensus of $622M implying a 3.3% decline.
- KSU also said that after a strong start to Q4 in October, intermodal volumes decelerated in November, to signal an end to the peak season.
- Also today: UNP -2.7%, NSC -2.8%, CP -2.7%, CNI -2.1%, IYT -2.1%.
Dec. 2, 2015, 12:17 PM
- Transportation stocks are lower on the day on some broad macroeconomic concerns. Some BAML downgrades in the sector are also weighing on sentiment.
- Trading is notably weak in CXS Corp (CSX -2.3%), American Railcar Industries (ARII -2.6%), Kansas City Southern (KSU -1.9%), YRC Worldwide (YRCW -5.7%), Heartland Express (HTLD -3.7%), Swift Transportation (SWFT -3%), FedEx (FDX -0.9%), UPS (UPS -0.5%), Air Transport Services (ATSG -1.7%), and Matson (MATX -2.5%).
- A notable exception to the sector slide is airline stocks which are showing strength after Delta Air Lines (DAL +2.7%) reported some eye-opening capacity constraint. The major carrier increased passenger revenue per available seat mile sand load factor during November. A 3% decline in crude oil prices is also factoring in to the rally in airline stocks.
- United Continental (UAL +3.2%), Hawaiian Holdings (HA +2.9%), Southwest Airlines (LUV +2.3%), and Republic Airways Holdings (RJET +4.4%) are all solidly higher.
- The Dow Jones Transportation Average is down 0.8% off the conflicting forces of gravity.
- Related ETFs: IYT, XTN, JETS.
Nov. 10, 2015, 6:31 PM
- The U.S. Department of Transportation denies an appeal by railroads challenging new crude-by-rail rules that require the installation of expensive new brakes on trains hauling hazardous flammable materials.
- The rules issued in May include the phasing in of tougher tank car standards over several years and requirements for new braking systems on trains hauling more than 70 cars of crude oil by 2021.
- Relevant tickers include CSX, NSC, UNP, KSU, BRK.A, BRK.B, CNI, CP, TRN, GBX, WAB, ARII, RAIL
- Earlier: Norfolk Southern CEO says new rules could make oil-by-rail too expensive (May 5)
Nov. 10, 2015, 2:13 PM
- CSX Corp. (CSX +0.3%) reaffirms its earnings guidance for the year but warns that energy market headwinds would hurt 2016 results.
- The rail company says growth will be led by intermodal transport, "as CSX continues to drive highway-to-rail conversions to capture a share of the estimated 9M loads in the east that are well-positioned for intermodal service."
- CSX says it sees current quarter earnings to fall slightly Y/Y - analysts expect a 3% decline to $0.48/share - and continues to target mid-single-digit FY 2015 EPS growth as intermodal growth and efficiency initiatives offset ~$450M in coal revenue declines; analysts expect ~$2/share for the year.
- CSX also says it continues to expect "meaningful margin expansion" in 2015 and a mid-60s operating ratio in the longer term.
Nov. 9, 2015, 2:10 PM
- Shares of Norfolk Southern (NSC +12.2%) and Canadian Pacific (CP +6%) spike on reports the companies are considering a merger.
- The speculation is giving a lift to a good portion of the sector with CSX (CSX +3.7%), Union Pacific (UNP +2.2%), and Kansas City Southern (KSU +2.9%) all notable movers.
- Railroad M&A talk has picked up this year as some market caps have moved down.
Oct. 30, 2015, 1:04 PM
- U.S. rail traffic fell 5.6% to 553,144 carloads and intermodal units for the week which ended on October 24. Intermodal volume was off 3.7% for the period.
- Weak traffic was seen for the transport of petroleum (-21%), metallic ores/metals (-19%), and coal (-13%). Grain and motor vehicles were the commodities groups which showed traffic strength once again.
- Mexican and Canadian railroads also reported a drop in traffic.
- Total combined U.S. traffic is down 1.3% YTD to 22.962M carloads and intermodal units.
- Total combined North American rail volume is off 1.1% YTD to 29.895M carloads and intermodal units.
- Railroad stocks: UNP, NSC, CSX, CNI, ARII, GBX, CP, KSU, CNI, WAB, TRN.
Oct. 27, 2015, 3:29 PM
- Railroad and trucking stocks are down today on a mix of news seen as negative for the transportation sector. UPS reported lower package volume in Q3 and durable-goods orders fell in September.
- Decliners include Norfolk Southern (NSC -3.6%), Union Pacific (UNP -5.1%), CSX Corporation (CSX -3.8%), Kansas City Southern (KSU -4.4%), Canadian Pacific(CP -5.4%), Canadian National Railway (CNI -3.9%), Genesee & Wyoming (GWR -5.3%), XPO Logistics (XPO -11.8%), Echo Global Logistics (ECHO -12.6%), C.H. Robinson Worldwide (CHRW -2.8%), Radiant Logistics (RLGT -7.9%), FedEx (FDX -1.4%), Air T (AIRT -5.9%), and Air Transport Services (ATSG -3.2%).
- The iShares Dow Jones Transportation ETF (NYSEARCA:IYT) is down 2.7%.
- Related: Tough day for four wheelers (Oct. 27)
Oct. 27, 2015, 2:13 AM
- Railroads are amplifying warnings that the U.S. transportation network could grind to a halt at the start of the new year if Congress makes them stick to a year-end deadline to install a new safety system called "positive train control" - rail's version of air traffic control.
- The railroads appear likely to get their wish. Late Friday, lawmakers tacked a three year extension on to a transportation funding bill, which is widely expected to pass both houses this week.
- Railroad stocks: UNP, NSC, CSX, CNI, ARII, GBX, CP, KSU, CNI, WAB, TRN, GWR, TRN, RAIL
CSX Corp. is a transportation supplier company. It provides rail-based transportation services including traditional rail service and the transport of intermodal containers and trailers. The company through its principal operating subsidiary, CSX Transportation, Inc., provides an important link... More
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