What Led To 10% Decline In CSX Corporation’s Stock Price Over The Last Two Weeks?

by Trefis Team
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CSX Corporation’s (NYSE: CSX) stock price has declined by over 10% from around $80 to $70 over the last two weeks. This can be attributed to lower than expected Q2 earnings, and more importantly, revised guidance of a low single-digit decline in revenue for the full year, which compares with earlier guidance of low single-digit revenue growth.  The company expects weakness and economic slowdown in the second half of the year, which could impact its industrial freight business. CSX Corporation is already seeing lower intermodal revenues this year, given its focus on rationalization of its intermodal lanes. Look at our interactive dashboard analysis ~ Why Has CSX Corporation’s Stock Declined 10% Over The Last Two Weeks? ~ for more details. In addition, you can see more of our data for industrial companies here.

Revenue And Earnings Were Below Estimates

  • CSX Corporation reported revenues of $3.2 billion and EPS of $1.08 for Q2 2019.
  • This compares with average consensus of $3.1 billion revenue and $1.11 EPS for Q2.

Revenue Decline Can Be Attributed To Continued Weakness In Coal, While Intermodal Is Being Impacted By The Company’s Focus On Rationalization of Lanes. Merchandise Freight Saw Slight Growth Led By Higher Volume And Pricing

Overall Pricing Was Also Impacted By Lower Fuel Surcharge, Given The Trends In Crude Oil Prices. However, The Company Managed To Improve Its Operating Ratio.

Better Margins, And Lower Share Count Aided The Overall Earnings Growth In Q2.

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