#What Happened
CSX Corporation (NASDAQ:CSX) reported third-quarter adjusted earnings per share of $0.44, topping analyst forecasts around $0.42, even as overall profit fell due to a $164 million goodwill impairment tied to its Quality Carriers unit. Revenue came in at $3.58 billion, down 1% year over year, as stronger intermodal volumes (+5%) and firm merchandise pricing helped offset an 11% decline in coal revenue, driven by weaker export demand. Domestic coal shipments rose 8%, partially cushioning the impact. Shares rose about 2% following the announcement.
#Why It Matters
The results highlight CSX’s ability to maintain profitability and operational discipline amid a mixed freight environment. Efficiency metrics improved across the network—train velocity increased 2%, terminal dwell fell 8%, and intermodal trip-plan compliance reached 93%. New CEO Steve Angel credited strong teamwork and customer relationships for steady performance, even as the railroad managed major infrastructure projects such as the Howard Street Tunnel clearance and the Blue Ridge Subdivision rebuild, both completed ahead of schedule. The latter project alone cost roughly $440 million this year.
#What to Watch Next
Focus will shift to upcoming reports from rival rail operators like Union Pacific and Norfolk Southern to assess whether CSX’s strength is industry-wide or company-specific. Continued monitoring of coal export trends, infrastructure spending, and management’s volume outlook will be key for the next few quarters.
#Quick Take
CSX’s solid adjusted earnings underscore resilience in its core franchise, with intermodal momentum and cost control offsetting coal softness and one-time charges. Operational improvements and disciplined capital projects suggest the railroad remains on track despite a challenging freight backdrop.
Investors following CSX’s earnings momentum may also want to see how sector rotations within the S&P 500 are reshaping industrial exposure and transportation stock weightings.