CSX Stock Falls After Q2 Earnings: Here's Why

CSX Corporation  CSX shares are trading lower in the after-hours market Thursday after the company announced second-quarter financial results.

The company reported quarterly earnings of 49 cents per share, in-line with the analyst consensus estimate, although it marks a 2% decrease over earnings of 50 cents per share from the same period last year. 

The company reported quarterly sales of $3.70 billion, slightly missing the analyst consensus estimate of $3.73 billion, a 3.01% decrease over sales of $3.81 billion in the same period last year.

The revenue decline of 3% year over year is attributed to lower fuel recovery, decreases in other revenue, pricing declines in export coal due to the impact of lower benchmark rates, and lower intermodal volume. However, pricing and volume gains in merchandise helped mitigate these factors' effects. Higher coal volumes, specifically export coal, also assisted in offsetting the decreases, with total coal volume increasing 4% year over year.

"The ONE CSX team continued to build momentum this quarter as our merchandise and coal businesses continued to demonstrate significant volume gains," said Joe Hinrichs, president and chief executive officer.

CSX clocked a Total Merchandise volume of 677,000 units, up 3% year-over-year, with revenue per unit of $3,244, up 1%. Intermodal volume was 684,000 units, down 10% year-over-year, with revenue per unit of $719, down 9%.

Coal volume was 185,000 units, up 4% year-over-year, with revenue per unit of $3,443, down 6%.

"Though intermodal activity remains challenged, our strong service performance distinguishes us in the marketplace and is attracting shippers to our network. We look forward to meeting the opportunities ahead in the second half of the year and over the long term as we position CSX for sustainable, profitable growth."

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CSX Price Action: Shares of CSX were down 3.95% at $32.38 in the after-hours session Thursday, according to Benzinga Pro.

Image by Hands off my tags! Michael Gaida from Pixabay