Summary
CSX Corp. reports quarterly earnings on January 16th.
Stagnant rail traffic could weigh on the stock.
Cost cuts have likely run their course.
Sell CSX into earnings.
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Source: Wall Street Journal
CSX Corporation (CSX) reports quarterly earnings January 16th. Analysts expect revenue of $3.14 billion and EPS of $0.99. The revenue estimate implies flat revenue growth sequentially. This could mark the third consecutive quarter that revenue was at or near $3.1 billion. Investors should focus on the following key items.
Rail Traffic Is Stagnant
For the week ending December 22nd, rail traffic and intermodal units were up 4.2% compared with the same week last year. Total carloads were up 1.7% for the first 51 weeks of the year. Rail traffic is one of the economy's vital signs. Robust rail traffic indicates businesses are more shipping goods cross country to meet consumer demand. This reflects rising business activity and economic growth.
