CSX Corporation (NASDAQ:CSX) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to US$34.39 in the week after its latest quarterly results. It was a credible result overall, with revenues of US$3.7b and statutory earnings per share of US$0.46 both in line with analyst estimates, showing that CSX is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for CSX  earnings-and-revenue-growth

Taking into account the latest results, the consensus forecast from CSX's 23 analysts is for revenues of US$15.0b in 2024. This reflects a satisfactory 2.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 5.3% to US$1.95. Before this earnings report, the analysts had been forecasting revenues of US$15.0b and earnings per share (EPS) of US$1.96 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$39.38. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic CSX analyst has a price target of US$44.00 per share, while the most pessimistic values it at US$30.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CSX's past performance and to peers in the same industry. It's pretty clear that there is an expectation that CSX's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.2% growth on an annualised basis. This is compared to a historical growth rate of 6.3% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that CSX is also expected to grow slower than other industry participants.



The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$39.38, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for CSX going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - CSX has  2 warning signs  we think you should be aware of.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.