CSX (CSX) reports Q1 earnings April 17th. Analysts expect revenue of $2.8 billion and eps of $0.66. The revenue estimate implies a 2% decline sequentially. Investors should focus on the following key items:
As Coal Goes So Goes CSX
Rail traffic white hot in the first half of 2017, but appears to have cooled so far this year. For the first 12 weeks of the year U.S. railroads reported cumulative volume of 3,030,729 carloads, down by 0.5% Y/Y. Intermodal units were up 5.7% and combined volume experienced an increase of 2.6%. CSX's two largest carload groups are Industrial (21% of total volume) and Coal (14% of total volume). Coal prices have been volume over the past few years, and CSX's coal exposure still defines the company.
