Core Viewpoint - CSX Corp. reported disappointing earnings for the fourth quarter, missing both earnings and revenue estimates [1][2] Financial Performance - Quarterly earnings were 39 cents per share, below the consensus estimate of 42 cents [1] - Quarterly revenue was $3.51 billion, missing the Street estimate of $3.54 billion and down from $3.540 billion in the same period last year [1] Management Commentary - CEO Steve Angel attributed the results to a subdued industrial demand environment and adjustments made to the cost structure [2] Market Reaction - Following the earnings announcement, CSX shares increased by 4.7%, trading at $37.46 [2] Analyst Ratings - Evercore ISI Group analyst Jonathan Chappell maintained an Outperform rating but lowered the price target from $41 to $40 [3] - Bernstein analyst David Vernon maintained a Market Perform rating and reduced the price target from $37 to $36 [3]

Core Viewpoint - CSX Corp. reported disappointing earnings for the fourth quarter, missing both earnings and revenue estimates [1][2] Financial Performance - Quarterly earnings were 39 cents per share, below the consensus estimate of 42 cents [1] - Quarterly revenue was $3.51 billion, missing the Street estimate of $3.54 billion and down from $3.540 billion in the same period last year [1] Management Commentary - CEO Steve Angel attributed the results to a subdued industrial demand environment and adjustments made to the cost structure [2] Market Reaction - Following the earnings announcement, CSX shares increased by 4.7%, trading at $37.46 [2] Analyst Ratings - Evercore ISI Group analyst Jonathan Chappell maintained an Outperform rating on CSX but lowered the price target from $41 to $40 [3] - Bernstein analyst David Vernon maintained a Market Perform rating and reduced the price target from $37 to $36 [3]

Core Insights - CSX Corporation reported disappointing fourth-quarter 2025 results, with earnings per share of 39 cents falling short of the Zacks Consensus Estimate of 42 cents, marking a 7.1% decline year-over-year [1][10] - Total revenues of $3.51 billion missed the Zacks Consensus Estimate of $3.55 billion and decreased by 1% year-over-year, primarily due to lower export coal revenues and a decline in merchandise volume [2][10] Financial Performance - Operating income for the fourth quarter decreased to $1.11 billion year-over-year, while total expenses increased by 1% [3] - CSX's operating margin for the December quarter was reported at 31.6%, with total volumes increasing by 1% year-over-year, driven by intermodal volumes [3] Segment Performance - Merchandise revenues fell by 2% year-over-year to $2.16 billion, slightly below the estimate of $2.2 billion, with merchandise volumes also declining by 2% [4] - Intermodal revenues increased by 7% year-over-year to $562 million, surpassing the estimate of $540.7 million, with segmental volumes up by 5% [4] - Coal revenues decreased by 5% year-over-year to $472 million, falling short of the estimate of $489.8 million, while trucking revenues totaled $196 million, also below the estimate of $223.7 million [5] Liquidity and Debt - CSX ended the fourth quarter of 2025 with cash and cash equivalents of $670 million, down from $933 million at the end of 2024, while long-term debt increased to $18.2 billion from $17.9 billion in 2024 [6] Future Outlook - CSX's guidance for 2025 includes low single-digit revenue growth, an improvement in operating margin by 200 to 300 basis points, and an increase in free cash flow of at least 50%, with capital expenses expected to be below $2.4 billion [7]

Core Viewpoint - CSX Transportation reported Q4 2025 earnings with revenue of $3.5 billion, a 1% year-over-year decline, falling short of analysts' average expectations of $3.54 billion [1] - Earnings per share were $0.39, also below the expected $0.41, primarily due to weak industrial demand and reduced coal export volumes offsetting pricing gains and intermodal transportation growth [1] - CEO Steve Angel stated that CSX has a strong operational foundation and aims to improve financial performance in 2026 by focusing on productivity, cost control, and capital discipline while continuing to provide safe and reliable services [1] Financial Performance - Revenue for Q4 2025 was $3.5 billion, down 1% year-over-year [1] - Earnings per share were reported at $0.39, lower than the anticipated $0.41 [1] Operational Insights - The decline in revenue and earnings was attributed to weak industrial demand and a decrease in coal export volumes [1] - Despite the challenges, CSX is focusing on enhancing productivity and controlling costs [1] Future Outlook - The company aims for better financial performance in 2026 by maintaining a strong operational foundation and prioritizing safety and reliability in services [1]

Core Insights - CSX's fourth quarter profits were negatively impacted by ongoing freight challenges, with no expected turnaround in the near future [1] - The company reported flat operating income of $1.11 billion and a 1% decline in revenue to $3.5 billion, while expenses also decreased by 1% to $2.39 billion [2] - Earnings per share increased by 3% to 39 cents, but adjusted for one-time items, operating income and earnings per share declined by 9% and 7% respectively [3] Financial Performance - The operating ratio improved by 0.3 points year-over-year to 68.4% [2] - Overall volume increased by 1% in the fourth quarter, with intermodal traffic up 5%, coal up 1%, and merchandise down 2% [3] - Domestic coal volume rose by 6% due to higher shipments to power plants, while export coal volume fell by 3% due to a derailment affecting a key route [4] Strategic Focus - CSX executives do not anticipate significant economic improvement in the current year and will concentrate on growth initiatives, including nearly 600 industrial development projects [5] - The company aims to control costs through over 100 diverse savings initiatives, including reductions in non-labor spending and improved asset utilization [6] - Recent actions included the elimination of 166 management positions and the furlough of nearly 200 train conductors as part of cost control measures [6]

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Core Viewpoint - CSX is navigating a challenging environment with subdued demand and limited growth opportunities, while focusing on cost management and operational efficiency to improve margins and free cash flow in 2026 [3][5][13]. Financial Performance - In Q4, CSX reported a 1% increase in volumes but a 1% decline in revenue, with operating income and earnings per share down approximately 9% and 7% year-over-year, respectively [4][5]. - The quarter included about $50 million in charges related to workforce and technology actions, impacting earnings by $0.02 per share [6][5]. - Total revenue per unit declined by 2% due to negative business mix and weaker coal prices [8]. Operational Highlights - The operations team achieved improved safety results and network performance, with significant declines in FRA injury and accident rates [2]. - Network fluidity improved from Q1 to Q4, with better metrics in velocity, cars online, dwell, and trip plan compliance [2]. Segment Performance - Intermodal services showed strength with a 5% increase in volume and a 7% rise in revenue, attributed to faster transit times and improved connectivity [11]. - Merchandise volume and revenue both declined by 2%, with notable weaknesses in chemicals and forest products [9]. - Automotive volume decreased by 5% due to supply constraints, while fertilizer volume rose by 7% [10]. 2026 Outlook - CSX anticipates a soft demand environment in 2026, projecting low single-digit revenue growth and operating margin expansion of 200 to 300 basis points [5][13]. - Capital expenditures are expected to be below $2.4 billion, focusing on safety, reliability, and productivity projects [14]. - Free cash flow is projected to increase by at least 50% compared to 2025, driven by higher earnings and lower capital outlays [14]. Strategic Initiatives - The company has identified over 100 initiatives to reduce non-labor spending, including cuts to outside services and improved asset utilization [6]. - CSX is focusing on workforce optimization and tighter discretionary spending management to enhance productivity [13].

分组1 - CSX reported quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.42 per share, and down from $0.42 per share a year ago, representing an earnings surprise of -6.14% [1] - The company posted revenues of $3.51 billion for the quarter, missing the Zacks Consensus Estimate by 1.15%, and down from $3.54 billion year-over-year [2] - CSX has surpassed consensus EPS estimates two times over the last four quarters but has not beaten consensus revenue estimates during the same period [2] 分组2 - The stock has added about 0.8% since the beginning of the year, outperforming the S&P 500's gain of 0.4% [3] - The current consensus EPS estimate for the coming quarter is $0.41 on revenues of $3.55 billion, and for the current fiscal year, it is $1.89 on revenues of $14.71 billion [7] - The Zacks Industry Rank for Transportation - Rail is currently in the bottom 11% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8] 分组3 - The estimate revisions trend for CSX was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - Canadian Pacific Kansas City, another stock in the same industry, is expected to report quarterly earnings of $0.99 per share, reflecting a year-over-year change of +7.6% [9]

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Financial Data and Key Metrics Changes - The company reported a 1% increase in volume, but revenue decreased by 1% due to business mix headwinds and coal pricing [9][14] - Operating income and earnings per share fell by 9% and 7% year-over-year, respectively, with results impacted by approximately $50 million in charges for workforce optimization and technology impairments [4][10] - Fourth quarter expenses increased by $73 million, or 3%, excluding goodwill impairment charges [10] Business Line Data and Key Metrics Changes - Merchandise volume and revenue both declined by 2%, with softness in chemicals and forest products, where volume decreased by 6% and 11%, respectively [15] - The intermodal franchise saw a revenue increase of 7% year-over-year, driven by a 5% increase in volume [16] - Coal business volume increased by 1% year-over-year, with domestic tonnage up by 6% due to higher utility demand [16][17] Market Data and Key Metrics Changes - The company anticipates modest declines in housing starts and challenges in the automotive market, affecting many commodity markets [18] - The consensus forecasts suggest low single-digit revenue growth for 2026, with flat industrial production and modest GDP growth expected [22] - The company is positioned to benefit from infrastructure project activity driving demand for materials like cement and aggregates [17] Company Strategy and Development Direction - The company is focused on driving greater profitability and cash flow while preparing for future demand increases [6] - Capital expenditures for 2026 are planned to be below $2.4 billion, emphasizing investments in safety, reliability, and growth projects [23] - The company is committed to optimizing its workforce and managing discretionary expenses to improve operating margins [22][24] Management's Comments on Operating Environment and Future Outlook - Management noted that the near-term outlook remains soft across many key markets, with no significant improvement in macroeconomic conditions anticipated [22] - The company is focused on executing core fundamentals of service, cost discipline, and operating efficiency to create long-term shareholder value [24] - Management expressed confidence in the ability to improve operating margins through productivity initiatives and effective price management [38][68] Other Important Information - The company has identified over 100 diverse savings initiatives to drive efficiency across various business areas [11][52] - The leadership team has been renewed to enhance value creation and fiscal responsibility [5] - The company is preparing for potential impacts from severe weather, with improved network conditions compared to previous years [42][43] Q&A Session All Questions and Answers Question: Inquiry on Operating Ratio Improvement - The base operating ratio for 2025 is adjusted for goodwill charges, and pricing initiatives are expected to yield higher price yields in 2026 compared to 2025 [27][28] Question: Clarification on Guidance for Improvement - The guidance for 200-300 basis points improvement includes unique charges from 2025, with a focus on productivity initiatives to drive further improvements [32][33] Question: Revenue Growth Composition - The company anticipates low single-digit revenue growth, with modest volume growth expected and a focus on pricing management [36][37] Question: Preparation for Severe Weather - The network is in better condition than last year, with precautions in place to mitigate impacts from upcoming storms [42][43] Question: Positioning Amid Industry Merger - The company is focused on running its business effectively while preparing for potential opportunities arising from industry changes [55][56] Question: Coal Revenue Per Unit Clarification - Revenue per unit for coal is influenced by market mix, with expectations for stabilization in the coming year [60][63]