CSX Corp (NASDAQ:CSX) stock fell 2.67% (As on January 24, 11:23:50 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter earnings that missed Wall Street estimates. The company reported fourth quarter 2024 operating income of $1.11 billion compared to $1.32 billion in the prior year period. Net income was $733 million compared to $882 million in the same period last year. Results for the fourth quarter include a pre-tax, non-cash goodwill impairment charge of $108 million. Total volume of 1.58 million units for the quarter was 1% higher compared to fourth quarter 2023. The largest contributor was growth in intermodal volume, which gained 4%. CSX’s operating margin was 31.3% for the quarter, and adjusted operating margin was 34.3%. Looking across the end markets, chemicals remained strong in the fourth quarter, consistent with the full year performance with volume increasing 6%. Robust demand for plastics and LPGs has driven much of the growth throughout 2024. Minerals volume was supported by positive demand for cement and aggregates and forest products volume was up 3% as CSX capitalized on continued demand in paper markets and pulp board. Coal revenue declined 20% for the quarter on 7% lower volume as we’ve navigated the effects of reduced global benchmark pricing and production issues. All-in coal RPU declined 14% year-over-year and 4% sequentially in line with previous guidance. Export volume fell modestly, largely due to lower supply availability from certain coal mines with temporary geological issues limited production.

Meanwhile, the company entered Q4 still dealing with the residual effects of the previous storm such as the Blue Ridge reroutes. Hurricane Milton in particular caused long periods of recovery for the various commodities to move into and out of Florida. This resulted in increased well for the traffic in the largest volume state. It also affected other parts of the network as we were unable to run the regular cadence on some flows throughout the storms up to recovery.

CSX in the fourth quarter of FY 24 has reported the adjusted earnings per share of 38 cents, missing the analysts’ estimates for the adjusted earnings per share of 44 cents. The company had reported the adjusted revenue decline of 4 percent to $3.54 billion in the fourth quarter of FY 24, missing the analysts’ estimates for revenue of $3.59 billion. This is driven by declines in fuel surcharge and coal revenue offset the effects of higher pricing and volume in merchandise and volume growth in intermodal.