CSX's Guidance Remains Intact Despite Disruptions: Analysts Weigh In On Q1 Results, Outlook
CSX Corp (NASDAQ:CSX) shares have been in focus after U.S. Sen. Tommy Tuberville‘s latest regulatory filing.
CSX also reported its first-quarter results on Wednesday, which came amid an exciting earnings season. Here are some key analyst takeaways from the release.
BofA Securities On CSX
Analyst Ken Hoexter maintained a Buy rating while cutting the price target from $40 to $39.
CSX's first-quarter earnings declined by 2% year-year but came ahead of Street expectations, Hoexter said.
"Despite challenges from weather in January and the collapse of Baltimore’s Key Bridge, CSX reiterated its 2024 low- to mid-single digit volume and revenue growth targets, as it sees momentum across its Merchandise, Intermodal and Export Coal franchises," the analyst added.
Goldman Sachs On CSX
Analyst Jordan Alliger reiterated a Buy rating and price target of $44.
CSX reported operating earnings a tad ahead of expectations, with higher-than-forecast revenue producing "an OR of 63.2%, 20bps better than our 63.4% forecast," Alliger said in a note.
"While we note slightly lower ex-intermodal volume growth to start the 2Q, we remain optimistic for continued volume improvement as we move through 2024 and note solid intermodal volume growth at +7% YoY in the first two weeks of April," the analyst added.
Check out other analyst stock ratings.
Benchmark On CSX
Analyst Nathan Martin maintained a Buy rating and price target of $40.
CSX's first-quarter earnings of 46 cents per share beat consensus by a penny and its second-quarter export coal shipments are expected to be "pressured by the Baltimore bridge collapse with management estimating a net revenue headwind of $25M-$30M for each month the port remains closed," Martin said.
"As for intermodal, there should be minimal impact from the port outage with CSX expecting solid international growth on improving import levels and steady demand," the analyst wrote.
The company's merchandise volume is expected to grow, "driven by new business wins, a ramp-up of industrial development projects, and positive trends in several business segments," he added.
BMO Capital Markets On CSX
Analyst Fadi Chamoun reaffirmed an Outperform rating and price target of $40.
"CSX continues to sharpen its operational execution," Chamoun said. The company achieved strong cost savings in the first quarter and its business development pipeline is robust, he added.
Management reiterated their full-year guidance, the analyst stated. "We expect results and reaffirmed confidence in the outlook to be well-received," he added.
Baird On CSX
Analyst Garrett Holland reiterated an Outperform rating and price target of $39.
CSX's results were both clean and slightly better than expected, Holland said.
"Despite challenges from the Baltimore coal volume disruption, lower coal RPU, and excess capacity in the truckload market, CSX remains confident in its ability to improve earnings and margins Q/Q in Q2, with larger Y/Y gains likely in 2H24," he added.
CSX Price Action: Shares of CSX had risen by 1.48% to $34.67 at the time of publication on Thursday.
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