CSX (NYSE: CSX) beat estimates by 2 cents last quarter and investors are hoping it can beat them again. The company will unveil its latest earnings on Tuesday, October 18. CSX provides rail-based transportation services including traditional rail service and the transport of intermodal containers and trailers.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back CSX, with 17 of 24 rating it a buy and the remainder rating it a hold. Analysts don't like CSX as much as competitor Norfolk Southern overall. While analysts still rate the stock a Moderate buy, they are a little more optimistic about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $2.98 billion in revenue this quarter. That would represent a rise of 11.6% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of 44 cents per share. Estimates range from 40 cents to 47 cents.

What our community says:
 CAPS All Stars are solidly behind the stock with 96.9% giving it an "outperform" rating. The community at large backs the All Stars with 96.4% awarding it a rating of "outperform." Fools have embraced CSX and haven't been shy with their opinions lately, logging 588 posts in the past 30 days. Even with a robust four out of five stars, CSX's CAPS rating falls a little short of the community's upbeat outlook.

Management:
 CSX's profit has risen year over year by an average of 33.4% over the past five quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

64.1%

63.4%

66.7%

67.1%

Operating Margin

30.7%

27.5%

30%

30.9%

Net Margin

16.8%

14.1%

15.3%

15.5%

One final thing: If you want to keep tabs on CSX movements, and for more analysis on the company, make sure you add it to your Watchlist.

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