Why Is CSX (CSX) Up 2.5% Since Last Earnings Report?

Core Viewpoint - CSX's recent earnings report showed a mixed performance, with a slight increase in share price but a decline in key financial metrics, raising questions about future performance leading up to the next earnings release [1]. Financial Performance - Quarterly earnings per share were 44 cents, beating the Zacks Consensus Estimate of 42 cents, but decreased by 10.2% year-over-year due to lower revenues [2]. - Total revenues amounted to $3.57 million, missing the Zacks Consensus Estimate of $3.58 million, and declined by 3.4% year-over-year, attributed to lower export coal prices, reduced fuel surcharge, and a decline in merchandise volume [3]. - Operating income decreased by 11% year-over-year to $1.28 billion, with an operating margin of 35.9%, down 320 basis points year-over-year [3]. - Total expenses increased by 2% year-over-year to $2.29 billion, while overall volumes rose marginally by 0.1% year-over-year, but revenue per unit decreased by 4% year-over-year [4]. Segmental Performance - Merchandise revenues fell by 2% year-over-year to $2.25 billion, with merchandise volumes also down by 2% year-over-year [5]. - Intermodal revenues decreased by 3% year-over-year to $491 million, with segmental volumes increasing by 2% but revenue per unit decreasing by 5% year-over-year [5]. - Coal revenues fell by 15% year-over-year to $477 million, with coal volumes increasing by 1% but segmental revenue per unit declining by 16% year-over-year [6]. - Trucking revenues totaled $211 million, down by 5% year-over-year, while other revenues grew by 20% year-over-year to $138 million [6]. Liquidity and Guidance - CSX ended the second quarter of 2025 with cash and cash equivalents of $387 million, down from $1.14 billion at the end of the prior quarter, while long-term debt remained flat at $18.5 billion [7]. - For 2025, CSX expects total volume growth and anticipates lesser year-over-year revenue headwinds from lower export coal benchmarks and diesel prices in the second half of 2025 [8]. Market Sentiment and Estimates - There has been a downward trend in estimates for CSX over the past month, indicating a cautious outlook among investors [9]. - CSX currently holds a poor Growth Score of F, a Momentum Score of B, and a Value Score of D, placing it in the bottom 40% for the value investment strategy [10]. - Overall, CSX has a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return from the stock in the coming months [11].