CSX Corp. (CSX) managed to pull off something interesting Thursday: missing Wall Street's expectations while still getting rewarded with a nice after-hours rally.
The Numbers
CSX reported fourth quarter earnings of 39 cents per share, falling short of the 42-cent consensus estimate. Revenue didn't fare much better, coming in at $3.51 billion against expectations of $3.54 billion. That's also a decline from the $3.54 billion the railroad hauled in during the same quarter last year.
The company blamed the revenue drop on "effects of lower merchandise volume and reduced export coal revenue offset higher pricing in merchandise and intermodal, an increase in intermodal volume, and higher fuel surcharge revenue." Translation: some parts of the business got weaker, though pricing improvements and fuel surcharges helped cushion the blow.
What Management Says
"Our quarterly results reflect the subdued industrial demand environment and actions taken to adjust our cost structure," CEO Steve Angel said in the release.
But Angel struck an optimistic note looking ahead: "CSX has a strong operational foundation, and we are positioned to deliver improved financial performance in 2026 as we focus on driving productivity, cost control, and capital discipline while continuing to provide safe and reliable service."
Market Reaction: CSX stock climbed 5.79% to $37.85 in extended trading Thursday, suggesting investors are more focused on what's ahead than what just happened.
