Why CSX Stock Rose Over 2% In After-Hours Trading

CSX Corp. (CSX) shares climbed 2.25% in Thursday’s extended trading after the rail-based freight transportation company reported a third-quarter earnings beat, sending retail sentiment soaring.

Jacksonville, Florida-based CSX reported adjusted earnings per share (EPS) of $0.44, exceeding the Fiscal.ai-compiled consensus by a penny. 

CEO Steve Angel said, “This quarter’s operational performance reflects the dedication of our workforce and our commitment to running the best railroad in North America.” “Looking ahead, CSX is well-positioned to build on this momentum to deliver long-term profitable growth and create value for our shareholders.” The third-quarter print marked the first quarterly report under Angel, who assumed reins in late September.

Revenue fell 1% year-over-year (Y-o-Y) to $3.587 billion, aligning with the consensus estimate, despite a 1% increase in volume. Lower export coal prices and volume decline in merchandise partially offset the higher other revenue, higher merchandise pricing and intermodal volume growth.

Transportation sector peer J.B. Hunt Transportation (JBHT), which competes and partners with CSX in the intermodal freight market, announced forecast-beating results late Wednesday,  inviting a raft of upward price target adjustments by Wall Street analysts. Its stock rallied over 22% in Thursday’s session.

Retail Relishes Q3 Print

On Stocktwits, retail sentiment toward CSX stock turned ‘extremely bullish’ as of late Thursday from ‘bullish’ the day before. The message volume on the stream increased notably to ‘high’ levels. Retail chatter rose 900% in the 24 hours leading up to late Thursday.

A bullish watcher braced for a JBHT-like stock move for CSX on Friday. The user predicted a $40 price for the stock, which ended Thursday’s session down 0.69% at $35.99.

CSX Stock Outperforms 

CSX stock has gained 13% this year, outperforming the iShares Transportation Average (IYT), which is up a more modest 5.8%. According to Koyfin, the average analysts’ price target for CSX is $38.60, implying over 7% upside from Thursday’s close. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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