CSX’s Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component CSX (NYSE:CSX) will unveil its latest earnings on Tuesday, July 17, 2012. CSX provides rail-based transportation services including traditional rail service and the transport of intermodal containers and trailers.

CSX Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 47 cents per share, a rise of 2.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 48 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 47 cents during the last month. For the year, analysts are projecting net income of $1.83 per share, a rise of 9.6% from last year.

Past Earnings Performance: The company beat estimates last quarter after falling short in the prior two. In the first quarter, the company reported profit of 43 cents per share versus a mean estimate of net income of 38 cents per share. In the fourth quarter of the last fiscal year, the company missed estimates by one cent.

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A Look Back: In the first quarter, profit rose 13.7% to $449 million (43 cents a share) from $395 million (35 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 5.6% to $2.97 billion from $2.81 billion.

Stock Price Performance: Between May 14, 2012 and July 11, 2012, the stock price had risen 71 cents (3.3%), from $21.54 to $22.25. It saw one of its worst periods between June 18, 2012 and June 25, 2012 when shares fell for six straight days, dropping 6.1% (-$1.39) over that span.

Analyst Ratings: With 18 analysts rating the stock a buy, one rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 12.1% in the third quarter of the last fiscal year and 6.3% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 13.4% in the second quarter of the last fiscal year, 11.1% in the third quarter of the last fiscal year and 4.8% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Wall St. Revenue Expectations: Analysts are projecting a rise of 1% in revenue from the year-earlier quarter to $3.05 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.95 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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