Wed, Oct. 12, 5:35 PM
Wed, Oct. 12, 5:25 PM
- CSX +2.5% AH after posting better than expected Q3 earnings and revenues, even as sales slipped 8% to $2.71B as coal volume tumbled 21%.
- CSX says export coal declined due to oversupply in the world market and a strong U.S. dollar, but domestic coal has been a relative bright spot even though volumes continue to slip, as declines appeared to ease because hot summer weather helped demand.
- However, CSX cut Q3 expenses by 6.8% to $1.87B, primarily driven by $112M of efficiency gains and $53M of volume-related cost reductions.
Wed, Oct. 12, 4:05 PM
Tue, Oct. 11, 5:35 PM| Tue, Oct. 11, 5:35 PM | 1 Comment
Wed, Oct. 5, 2:38 PM
Fri, Sep. 30, 4:51 AM
- A New Jersey commuter train crashed into Hoboken Terminal Thursday morning, killing one person and injuring over a hundred, renewing a focus on a mandatory anti-collision system that has been plagued by lengthy delays.
- By law, NJ Transit is required to have a positive train control system in place by the end of 2018.
- Amtrak has rolled out PTC on its network, while freight railroads have mostly been rolling out the technology a section of track at a time.
- Related tickers: UNP, CSX, NSC, CNI, CP, KSU, WAB
Thu, Sep. 8, 12:19 PM
- CSX (CSX +0.1%) expects Q3 EPS to decline slightly from the level of Q2 as lower volume factors in.
- CFO Frank Lonegro says full-year coal tonnage will be down between 20% and 25% this year.
- Efficiency savings are expected to top $350M this year.
- The most interesting part of the company's presentation at the Cowen and Company 9th annual Global Transportation Conference was the long-term strategy outlined by Lonegro.
- "In focusing on its high-density routes serving merchandise and intermodal growth, the company plans to redeploy capital to extend sidings that drive longer, more efficient trains; for technology automation to further enhance efficiency; and in intermodal terminals and double-stack clearance projects to capture additional share of the estimated nine million truckload market opportunity in the east," said Lonegro.
- CSX presentation (.pdf)
Wed, Sep. 7, 12:03 PM
- Transportation stocks are solidly higher across select parts of the broad sector.
- Some technical traders think the sector is on a breakout pattern, while analysts are honed in on conference presentations where Q3 updates are being spilled.
- Notable gainers include Diana Shipping (DSX +8.3%), Scorpio Bulkers (SALT +7.5%), Safe Bulkers (SB +4.8%), and Panagaea Logistics Solutions (PANL +13.4%), Celadon Group (CGI +4.2%), USA Truck (USAK +3.5%), American Airlines Group (AAL +6.2%), United Continental (UAL +5.6%), Delta Air Lines (DAL +5.4%), CSX Corp (CSX +1.6%), and Roadrunner Transportation Systems (RRTS +2.1%), and Swift Transportation (SWFT +0.8%).
- The Dow Jones Transportation Index is up 1.11% vs. slight declines for broad market averages.
Fri, Jul. 15, 1:20 PM
- CSX (CSX -2%) is under pressure after receiving downgrades to Hold from Buy at both Stifel and BB&T, even following better than expected Q2 results announced two days ago.
- Stifel says CSX has been the most realistic of the major railroads in assessing the future, providing guidance and taking concrete actions to offset the impact of the end of the commodities bull market, but that valuation is overextended.
- BB&T wonders how much upside is left with CSX now trading at 15.3x its unchanged 2017 EPS estimate of $1.90, and that a big rebound in volumes on top of flawless execution would be needed to raise its earnings outlook.
- Other analysts are more positive, such as Argus, which maintains its Buy rating and raises its price target by $5 to $35, saying CSX faces "difficult macroeconomic conditions, as low natural gas prices reduce demand for coal, though the environment is beginning to ease."
Thu, Jul. 14, 2:27 PM
- The U.S. Department of Transportation proposes new rules for train cars carrying crude oil, including a requirement that carriers report to state officials the routes of trains and how much oil they would carry.
- Under the proposed new rules, rail carriers would be required to have spill plans for the maximum potential amount of oil spilled, and would have to notify state and tribal governments about the number of cars carrying crude oil that would pass through an area on a weekly basis, the route the trains would travel, and any hazardous cargo the trains would be carrying.
- Concern over potential oil train derailments has grown as the amount of oil shipped by rail has grown due to increased production in North Dakota and elsewhere; 11 cars from an oil train derailed last month in Oregon.
- Relevant tickers include CSX, UNP, NSC, KSU.
Wed, Jul. 13, 5:25 PM
- CSX rose 4.4% in the last hour of trading after its Q2 earnings leaked more than an hour early, and the company posted beats on top and bottom lines.
- An errant tweet posted the company's results and though it was removed, the company decided to release its report in full just before 3 p.m. ET, CEO Michael Ward said.
- Despite the beat, operating income at one of the country's largest railroads fell 17% as revenues dropped 12%, and net income fell nearly 20%. “In this environment, the company continues to right-size resources," Ward says, while it pursued strategic investments.
- Operating ratio was 68.9%, up 210 basis points Y/Y.
- The company said it continued to expect full-year EPS to decline, "reflecting the ongoing transition in the energy markets, along with the impact of the strong U.S. dollar and low commodity prices."
- A conference call will come tomorrow at 8:30 a.m. ET.
- Press Release
Wed, Jul. 13, 3:04 PM
Wed, Jul. 13, 2:25 PM
Tue, Jul. 12, 5:35 PM
Tue, Jun. 21, 11:14 AM
- Canadian Pacific (CP -2.7%) warns that Q2 revenue will tail off 12% Y/Y in Q2 and EPS will come in 18% lower.
- The revised guidance from the railroad company is for Q2 revenue of C$1.45B vs. C$1.56B and Q2 EPS of C$2.00 vs. C$2.48 consensus
- Greenbrier (GBX -1.6%), Genesee & Wyoming (GWR -1.6%), CSX (CSX -1.1%), and Canadian National Railway (CNI -0.9%) are all lower after the soft view from a sector leader.
Thu, Jun. 9, 9:34 AM
- Total U.S. carload traffic for the first 22 weeks of 2016 is down 8% to 10,923,300 carloads, according to data from the Association of American Railroads. Weak demand for transport of coal and petroleum products continues to be major factor.
- Intermodal containers and trailers traffic fell 2% to 5,648,851 units.
- U.S. rail traffic volume decreased 14% to 5,274,449 carloads.
- Railroad traffic is also lower in Canada (-8%) and Mexico (-0.1%) on a YTD comparison.
- Railroad stocks: UNP, NSC, CSX, CNI, ARII, GBX, CP, KSU, CNI, WAB, TRN.