Jan. 15, 2014, 5:28 PM
- CSX -3.5% AH after Q4 profit fell 3.8% as expenses climbed, masking a jump in volume boosted by strong shipments of chemicals, autos and agricultural products.
- CSX Chairman/CEO Michael Ward says the results were supported by "the strength of an expanding economy," boosting overall volume by ~6% despite a 5% decline in coal volume.
- CSX has higher exposure to coal than its peers, reflecting the railroad's geography, which includes the Appalachian coal basin; ~25% of CSX's revenue comes from coal.
- Intermodal and chemical shipments were important factors contributing to CSX's growth in revenue and volumes for most of 2013; during Q4, intermodal revenue rose 10% while chemicals climbed 17%.
Jan. 15, 2014, 4:05 PM
Jan. 15, 2014, 12:10 AM
Jan. 14, 2014, 5:35 PM
Jan. 10, 2014, 9:10 AM| 7 Comments
Jan. 8, 2014, 10:34 AM
- "The Safety Bubble Deflates," goes the title of a new report from Bernstein's Seth Masters, adding his name to those voices suggesting "safe" assets have become otherwise.
- Even though utilities, telecom, and consumer staples have underperformed of late, says Masters, their relative valuations are still well above the average over the last 50 years. "In periods of stress, investors tend to prize stability and safety too much. But in time, investors discover that every investment carries with it some degree of risk: if not risk of loss, then risk of inadequate growth."
- Related ETFs: XLU, IDU, VPU, NLR, GRID, JXI, NUCL, DBU, IPU, RYU, PUI, UPW, FXU, SDP, PSCU, AXUT, FUTY, UTLT, XLP, VDC, FXG, RHS, FSTA, PSL, PSCC, IYZ, VOX, IXP, IST, XTL, LTL, FCOM, TLL, AXTE
- Barron's Jack Hough says the "low beta" approach is a flawed one: First, volatility can change quickly as companies' or industries' fortunes shift; Second, beta tells one nothing about whether a stock's valuation is high or low. In a similar warning over low volatility stocks, BAML suggests looking for companies with smooth earnings rather than smooth stock prices. Screening for such, Hough finds CSX Corp (CSX -0.6%), DuPont (DD +0.6%), Cisco (CSCO -0.6%), and Halliburton (HAL -0.8%).
- Low volatility ETFs: SPLV, USMV, ACWV
Dec. 16, 2013, 2:58 PM
- Deutsche Bank is out with some commentary and price target adjustments for a number of transport names. "We expect slow growth to continue well into 2014," analyst Justin Yagerman notes, but says "this is not a bad environment for earnings growth as cost inflation is generally modest and volumes are expanding, albeit at a slower-than-desired pace."
- Rundown: XPO reiterated at Buy, PT hiked to $32; ODFL upgraded to Buy from Hold, PT lifted to $59 from $49; UPS reiterated at Buy, PT raised to $123 from $100; UNP reiterated at Buy, PT hiked to $198 from $175; RRTS reiterated at Buy, PT lifted to $35 from $32; SWFT reiterated at Buy, PT raised to $29 from $22; JBHT reiterated at Buy, PT upped to $89 from $83; NSC reiterated at Hold, PT to $91 from $83; LSTR reiterated at Hold, PT hiked to $58 from $56; KNX reiterated at Hold, PT lifted to $19 from $15; ABFS reiterated at Hold, PT raised to $35 from $29; CSX reiterated at Hold, PT hiked to $28 from $25.
Oct. 17, 2013, 11:33 AM| 4 Comments
Oct. 15, 2013, 5:22 PM
- More on CSX's Q3 results: Profit rose 1.8% as higher overall volume and some pricing gains more than offset continued weakness in the coal market.
- Intermodal volume climbed 10% in Q3, while coal volume dropped 7.4%; merchandise shipments rose 4.9%, as volume for chemicals, autos and metals grew but fell slightly for some agricultural products.
- CSX also expects FY 2013 earnings to be up slightly from 2012, an improvement from the prior expectation of roughly flat earnings.
- The results contrast with the warning Union Pacific (UNP) gave earlier this month.
- CSX +0.8% AH.
Oct. 15, 2013, 4:05 PM
Oct. 15, 2013, 12:10 AM
Oct. 14, 2013, 5:35 PM
Oct. 4, 2013, 8:58 AM
- Union Pacific (UNP) -1.2% premarket after issuing Q3 earnings and revenue guidance below Wall Street expectations, citing mild weather and an uncertain economic environment.
- UNP sees Q3 EPS of $2.45-2.48 on 4%-5% operating revenue growth vs. consensus estimates of a $2.56 profit on 7% revenue growth.
- Core pricing was 3.5%, below the 4% Y/Y increase achieved in each of the last two quarters, attributable to a less favorable commodity mix including lower coal shipments.
- Other rail stocks could come under pressure today: NSC, CSX, KSU, CP, CNI, GWR.
Oct. 2, 2013, 4:32 PM
Sep. 17, 2013, 1:36 PM
- A dose of fundamentals analysis reveals a trio of stocks that look cheap despite trading near 52-week highs, according to Barron's Jack Hough.
- The group all features steady cash flow in industries where margins are improving, while trading below 15X 2013 earnings estimates.
- In the bargain bin: CSX (CSX -0.3%), Owens Illinois (OI -0.5%), Hillenbrand (HI +0.9%).
Aug. 9, 2013, 4:58 PM
- A U.S. appeals court vacates a lower court's decision to certify a class action against railroad companies, a procedural win for the companies in a case about whether they illegally colluded to fix the price of fuel surcharges.
- Thousands of freight-shipping customers are suing four major railroads - Berkshire Hathaway's (BRK.A, BRK.B), BNSF, CSX, Union Pacific (UNP) and Norfolk Southern (NSC) - over the alleged conspiracy, seeking potentially billions of dollars in damages.
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