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CSX Corporation (CSX) reported disappointing fourth-quarter 2024 results, wherein both earnings and revenues lagged the Zacks Consensus Estimate.Quarterly earnings per share of 42 cents fell short of the Zacks Consensus Estimate by a penny and decreased 6.6% on a year-over-year basis on the back of lower revenues.
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Total revenues of $3.53 million missed the Zacks Consensus Estimate of $3.58 million and declined 3.8% year over year. The downside was owing to lower fuel recovery and lower coal revenue, which includes the impact of lower global benchmark rates and hurricane impacts in 2024. This was partially offset by higher pricing and volume in merchandise and higher intermodal volume.
Fourth-quarter operating income decreased 16% year over year to $1.11 billion. Total expenses were up 3% year over year to $2.43 billion. Overall volumes increased 1% year over year.
CSX Corporation Price, Consensus and EPS Surprise
CSX Corporation price-consensus-eps-surprise-chart | CSX Corporation Quote
Q4 Segmental Performance of CSX
Merchandise revenues improved 0.4% year over year to $2.19 billion in the reported quarter, lower than our estimate of $2.24 billion. Merchandise volumes rose 0.3% year over year to $650 million. Segmental revenue per unit increased 0.1% year over year.
Intermodal revenues decreased 5% year over year to $526 million, lower than our estimate of $531.2 million. Segmental volumes increased 4% while revenue per unit decreased 8% year over year.
Coal revenues fell 20% year over year to $499 million in the reported quarter, lower than our estimate of $529.7 million. Coal volumes decreased 7% year over year. Segmental revenue per unit fell 14% year over year.
Trucking revenues totaled $194 million, down 5% year over year. Other revenues grew 6% year over year to $129 million in the reported quarter.
Liquidity
CSX exited the fourth quarter of 2024 with cash and cash equivalents of $933 million compared with $1.64 billion at the end of the prior quarter. Long-term debt totaled $17.89 billion compared with $18.53 billion at the end of the prior quarter.
CSX generated $1.38 billion of cash from operating activities in the reported quarter.
2025 Guidance of CSX
For 2025, CSX expects total volume growth in the low to mid-single digit. Intermodal and Merchandise momentum is expected to be supported by conversions and industrial development, while coal volumes are expected to be lower due to facility shutdowns and mine production issues.
Full-year revenues are likely to be affected by lower coal benchmarks, diesel prices and volume mix, especially in the first half of the year.