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."
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
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.
Mon, Feb. 22, 3:48 PM
- Shares of CSX (CSX +3%) and other railroad operators are higher after BofA Merrill issues a round of upgrades in the group, citing industry volume comparisons that will get easier in April.
- The firm thinks CSX should enjoy multiple expansion as coal pressures stabilize amid the return of intermodal growth and volume stabilization; BofA, which upgrades CSX to Buy from Neutral and hikes its price target to $28 from $25, sees productivity gains driving double-digit sustainable earnings growth longer-term and operational improvements to offset some inflation costs.
- In addition to upgrading CSX, BofA raises Union Pacific (UNP +2%), Knight Transportation (KNX +2.8%) and Swift Transport (SWFT +2.7%) to Buy from Neutral, and lifts Genesee & Wyoming (GWR +2.4%) and Werner Enterprises (WERN +1.1%) to Neutral from Underperform.
Mon, Feb. 22, 10:19 AM
- Shipping stocks are on the move after the large jump in crude oil prices eases some anxiety over demand.
- Notable gainers include Diana Shipping (DSX +12.1%), Navios Maritime Partners (NMM +6.5%), Frontline (FRO +6.6%), and Scorpo Bulkers (SALT +5.9%).
- The trucking sector is also ahead of broad market averages off the oil news. ArcBest (ARCB +4.4%), Swift Transportation (SWFT +1.6%), Celadon Group (CGI +2%), and Knight Transportation (KNX +2.6%) (also upgraded) are on the rise.
- Railroad industry players CSX (CSX +3.8%) and Genesee & Wyoming (GWR +3.7%) are up sharply.
- On the vehicle manufacturing/supplier side, solid gainers include Meritor (MTOR +6.7%), Dana Holding (DAN +2.7%), Westport Innovations (WPRT +3.9%), Oshkosh (OSK +3.8%), Navistar (NAV +5.4%), and PACCAR (PCAR +2.3%).
- The Detroit Three are all in rally mode as well. Ford (NYSE:F) and GM (NYSE:GM) are up 2%, while Fiat Chrysler Automobiles (NYSE:FCAU) is 3.3% higher.
- Previously: Oil prices rebound, WTI heads back above $30 (Feb. 22 2016)
Wed, Jan. 13, 3:54 PM
- The transportation sector is down sharply across the board on broad macroeconomic concerns.
- Airline decliners include SkyWest (SKYW -6.9%), Spirit Airlines (SAVE -6.1%), United Continental (UAL -5.5%), Southwest Airlines (LUV -5.3%), and American Airlines (AAL -4.6%).
- Railroad movers include CSX (CSX -5.5%), Norfolk Southern (NSC -5.9%), Genesee & Wyoming (GWR -6.3%), Canadian Pacific (CP -5.6%), and Kansas City Southern (KSU -4.1%).
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."
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, 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. 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. 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. 20, 2015, 12:15 PM
- CSX (CSX +1.9%) says it is closing mechanical shops in Corbin, Ky., affecting ~180 employees at the operation, as the company continues to respond to lower coal traffic volume.
- The Corbin shops are used primarily to serve locomotives and rail cars for coal trains moving from Central Appalachia to the eastern U.S.
- CSX says the closure is the result of reduced need for locomotive and car maintenance because of the significant decline of the region's coal traffic.
Oct. 14, 2015, 3:59 PM
- CSX (CSX -1.8%) expects rail volumes to continue to fall through the end of the year, so CEO Michael Ward says in this morning's earnings conference call that the company will focus on productivity and raising prices over the coming year.
- With domestic coal carloads expected to drop 20% in Q3, CSX says it is looking to make each cargo train more productive by further stretching bulk cargo trains after adding ~10% more cars to their locomotives from a year ago.
- CSX says it expects to continue to gain market share and command strong prices, and the automotive industry should continue to boost shipments by rail, but chemicals will be lower in Q4, with crude oil volumes falling by at least 25% Q/Q, and metals will continue to be hit as a strong dollar fuels imports and domestic production falls.
- CSX says its core pricing rose 4.4% during Q3; "we continue to see a good pricing environment out there," Ward says.
Oct. 13, 2015, 4:05 PM
- CSX (NYSE:CSX): Q3 EPS of $0.52 beats by $0.02.
- Revenue of $2.94B (-8.7% Y/Y) misses by $40M.
- Shares +1.8%.
Aug. 27, 2015, 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
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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