CSX Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component CSX (NYSE:CSX) will unveil its latest earnings on Tuesday, October 16, 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 net income of 44 cents per share, a rise of 2.3% 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 47 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 46 cents during the last month. Analysts are projecting profit to rise by 8.4% compared to last year’s $1.81.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported profit of 49 cents per share against a mean estimate of net income of 47 cents, and the quarter before, the company exceeded forecasts by 5 cents with profit of 43 cents versus a mean estimate of net income of 38 cents.

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Stock Price Performance: Between August 14, 2012 and October 10, 2012, the stock price had fallen $1.87 (-8.1%), from $22.96 to $21.09. 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 17 analysts rating the stock a buy, none rating it a sell and eight rating the stock a hold, there are indications of a bullish stance by analysts.

A Look Back: In the second quarter, profit rose 1.2% to $512 million (49 cents a share) from $506 million (46 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 0.2% to $3.01 billion from $3.02 billion.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 6.3% in the fourth quarter of the last fiscal year and 13.7% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 11.1% in the third quarter of the last fiscal year, 4.8% in the fourth quarter of the last fiscal year and 5.6%in the first quarter before dropping in the second quarter.

Wall St. Revenue Expectations: Analysts predict a decline of 0.7% in revenue from the year-earlier quarter to $2.94 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.92 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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