Notable bullish activity has been detected in the options market for CSX (CSX, Financial), with a significant increase in call trading volume. Around 19,936 call options have changed hands, which is three times the usual volume. The most active options are the September 25 calls at strike prices of $35 and $32.5, which together have amassed approximately 14,300 contracts.
The implied volatility for these options has seen an uptick of more than 3 percentage points, reaching 25.48%. The Put/Call Ratio, indicating the number of put options traded relative to calls, is notably low at 0.08, suggesting a strong bullish sentiment.
Furthermore, investors are preparing for CSX's upcoming earnings announcement, which is anticipated on August 4th. This heightened activity and implied volatility suggest increased investor interest and expectations concerning CSX's forthcoming financial report.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 23 analysts, the average target price for CSX Corp (CSX, Financial) is $32.78 with a high estimate of $38.00 and a low estimate of $27.00. The average target implies an upside of 5.89% from the current price of $30.96. More detailed estimate data can be found on the CSX Corp (CSX) Forecast page.
Based on the consensus recommendation from 27 brokerage firms, CSX Corp's (CSX, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CSX Corp (CSX, Financial) in one year is $35.39, suggesting a upside of 14.31% from the current price of $30.96. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CSX Corp (CSX) Summary page.
CSX Key Business Developments
Release Date: April 16, 2025
- Total Revenue: $3.4 billion, down 7% from the same period last year.
- Total Volume: Decreased 1% compared to last year.
- Intermodal Volumes: Increased 2% due to an uptick in port traffic.
- Earnings Per Share (EPS): Decreased by 24%.
- Merchandise Revenue and Volume: Both declined 2%.
- Coal Revenue: Declined 27% on 9% lower volume.
- Intermodal Revenue: Down 3% despite a 2% increase in volume.
- Expenses: Increased by 2%, with $45 million additional costs related to network disruptions and severe winter weather.
- Free Cash Flow: Stable in the first quarter.
- Capital Expenditures: $133 million spent on Blue Ridge Subdivision rebuild project.
- Cash Return to Shareholders: Nearly $1 billion in the first quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CSX Corp (CSX, Financial) reported a 2% increase in intermodal volumes, driven by an uptick in port traffic.
- The company saw a third straight sequential decline in its FRA injury rate, indicating improvements in safety.
- CSX Corp (CSX) achieved a record with four automotive terminals winning industry awards for service excellence.
- The company has a strong pipeline of nearly 600 industrial development projects, with 24 new facilities going live in the first quarter.
- CSX Corp (CSX) maintained strong customer relationships, evidenced by high net promoter scores despite operational challenges.
Negative Points
- Total revenue for the quarter decreased by 7% year-over-year, primarily due to lower benchmark coal prices and reduced fuel surcharge.
- Earnings per share fell by 24%, reflecting reduced revenues and network performance challenges.
- Operational disruptions, including severe weather and infrastructure projects, led to inefficiencies and increased expenses.
- The company faced a 9% decline in coal volume, impacted by lower export prices and temporary mine outages.
- CSX Corp (CSX) experienced challenges in network fluidity, with increased dwell times and yard congestion affecting service metrics.
