CSX Shares Slide As Q4 Revenues Fall Short, Impact From 'Operational Issues' Notes Analyst

Core Viewpoint - CSX Corp experienced a significant decline in early trading following disappointing fourth-quarter revenues, which were reported at approximately $3.54 billion, a decrease of 3.8% year-on-year despite a 1% increase in volume [1][2]. Financial Performance - The adjusted earnings per share were reported at 42 cents, aligning with expectations but including a tax benefit of $26 million, or 1.5 cents per share [3]. - The decline in revenues was attributed to lower fuel revenues, an unfavorable mix, decreased coal commodity prices, and the impact of hurricanes [2]. Analyst Ratings and Price Targets - BMO Capital Markets maintained an Outperform rating but reduced the price target from $40 to $38 [2]. - RBC Capital Markets kept a Sector Perform rating while lowering the price target from $34 to $33, citing operational issues affecting results [4]. - Raymond James reaffirmed an Outperform rating with a reduced price target from $38 to $37, noting a 7% year-on-year decline in adjusted earnings [7]. - Stephens maintained an Overweight rating with a price target of $38, indicating that estimates may need further downward revision [9]. Future Outlook - Management warned of a significant year-on-year decline in operating income due to various costs, including lower export coal benchmarks and construction project expenses [5]. - Analysts expect challenges in the first half of 2025, with a projected unfavorable impact of $300 million from lower coal pricing and additional operating income losses from construction projects [11]. - Despite the headwinds, there is optimism that CSX's ONECSX initiatives could lead to improved revenues and earnings in the future [8][10]. Stock Performance - At the time of publication, CSX shares had declined by 2.88% to $32.70 [12].