Stocks

CSX Breaches Critical Price Level On Disappointing Earnings

CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services. The company offers rail services, as well as transports intermodal containers and trailers. It transports chemicals, automotive, agricultural and food products, minerals, fertilizers, forest products, and metals and equipment; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants

CSX is the third-largest US rail operator operating in 23 states as well as the District of Columbia and two Canadian provinces. Its network spans 21,000 miles.

CSX announced earnings before the opening bell today.  CSX posted earnings that didn’t meet expectations and slashed their full-year revenue forecast amid slowing.

The generally reliable railroad operator said earnings for the second quarter came in at $1.08 per share, up 7% from the like period last year but three cents shy of the Street consensus forecast, while revenues totaled $3.08 billion, missing analysts’ forecasts thanks in part to trade-related weakness in its intermodal business.

“Both global and U.S. economic conditions had been unusual this year, to say the least, and have impacted our volumes,” CSX CEO Jim Foote told investors on a conference call late Tuesday. “You see it every week in our reported carloads. The present economic backdrop is one of the most puzzling I have experienced in my career.”

Source

Because the Dow Transports have lagged the Dow Jones Industrial Avg. since September.

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And because CSX stock price has breached the major support / resistance line at $72.50, the chart suggests price will fall to the weekly demand at $55.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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