CSX Earnings: International Intermodal Is Rebounding, but Truck Competition Remains a Headwind

Eastern Class I railroad CSX’s first-quarter revenue fell slightly (about 1%) year over year on fuel surcharge declines, lower global benchmark coal pricing, and softer trucking revenue. On the other hand, total volume growth accelerated slightly in the quarter, merchandise carload core pricing remains healthy, and management maintained 2024 revenue growth guidance. Revenue was mostly aligned with our expectations, though intermodal yields fell more than we anticipated on persistent truck competition.