The 10-second takeaway
For the quarter ended June 28 (Q2), CSX beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share grew.
Margins grew across the board.
CSX logged revenue of $3.07 billion. The 17 analysts polled by S&P Capital IQ expected revenue of $3.02 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.52. The 28 earnings estimates compiled by S&P Capital IQ predicted $0.47 per share. GAAP EPS of $0.52 for Q2 were 6.1% higher than the prior-year quarter's $0.49 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.4%, 40 basis points better than the prior-year quarter. Operating margin was 31.4%, 10 basis points better than the prior-year quarter. Net margin was 17.4%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.95 billion. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $11.89 billion. The average EPS estimate is $1.78.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,068 members out of 2,141 rating the stock outperform, and 73 members rating it underperform. Among 449 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 440 give CSX a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CSX is outperform, with an average price target of $27.04.
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