CSX’s Q2 2016 Earnings Preview: Lower Shipment Volumes And Fuel Surcharge Revenue To Adversely Impact Results

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We expect CSX’s Q2 2016 revenue and profits to be negatively impacted by the effect of top line headwinds, resulting from a decline in shipment volumes and fuel surcharge revenue. Lower coal shipments, as a result of weak demand for coal from utilities in the prevailing environment of low natural gas prices, and lower fuel surcharge revenue, resulting from a weakness in oil prices, will negatively weigh on  CSX’s top line as indicated by our forecasts for the full year 2016, with a similar story expected in Q2, also. The decline in revenue will take its toll on CSX’s EPS as well, with lower operating expenses, particularly lower fuel expenses, expected to partially offset the impact of lower revenue on earnings.

CSX Q2 Earnings 1

CSX Q2 Earnings 2

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Have more questions about CSX? See the links below.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for CSX

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