CSX Stock Sinks as Hurricanes Hit Results, Outlook

Core Insights - CSX's results and outlook were significantly affected by Hurricanes Helene and Milton, leading to a miss in both profit and sales estimates for the third quarter [1][2] - The company reported third-quarter earnings per share (EPS) of $0.46, with revenue increasing by 1.3% year-over-year to $3.62 billion, both falling short of analyst expectations [1] - CSX anticipates a challenging fourth quarter, predicting a revenue decline of approximately $200 million due to falling fuel prices and weaker coal markets [2] Financial Performance - Third-quarter EPS was $0.46, with revenue at $3.62 billion, reflecting a 1.3% year-over-year increase [1] - Revenue growth was constrained by a decrease in coal revenue, lower fuel surcharges, and other revenue declines [1] Outlook and Challenges - The company revised its fourth-quarter outlook, indicating that external factors will make it more challenging, with modest volume growth expected [2] - CSX expects a sequential operating margin reduction in Q4 due to the impact of the storms and declining revenue [2] - Capital expenditures (CapEx) are projected at $2.5 billion, excluding costs for rebuilding hurricane-damaged infrastructure [2]