News Digest / Analysis & Ideas / Will These Transport Companies Beat Estimates Tomorrow?

Will These Transport Companies Beat Estimates Tomorrow?

Alex Vellor
07:16am, Wednesday, Jan 22, 2025
Photo by Forsaken Films on Unsplash.com

As the transport sector gears up for earnings announcements on January 23, traders are keen to see if United Pacific (UNP), American Airlines (AAL), and CSX can beat Wall Street expectations.

These companies are navigating varied market dynamics, from freight market challenges to rising passenger demand. Here's a closer look at their performance outlook, key estimates, and what traders should watch for.

United Pacific (NYSE:UNP)

United Pacific's fourth-quarter 2024 results are under pressure from freight market headwinds and a weaker consumer market. However, some optimism has emerged. The Zacks Consensus Estimate for earnings per share (EPS) has edged up 0.4% in the past 60 days to $2.78. If achieved, this would represent a modest 2.6% year-over-year increase.

Revenue expectations, however, are less favorable. Consensus pegs fourth-quarter revenue at $6.15 billion, suggesting a slight 0.2% decline from the same quarter last year. Investors will focus on how well the company managed to control costs amid these challenges.

American Airlines (NASDAQ:AAL)

American Airlines is riding the tailwind of strong passenger demand, particularly in domestic and international markets. Favorable ticket pricing has also bolstered revenues. The Zacks Consensus Estimate for fourth-quarter earnings has surged by 60% over the past two months to $0.64 per share, an impressive 120.7% increase from a year ago.

Revenue projections are equally promising. Analysts expect $13.4 billion in revenues, up 2.7% year-over-year. The key question is whether AAL can sustain profitability while navigating higher costs, including fuel and labor expenses.

CSX Corporation (NYSE:CSX)

For CSX, weaker coal markets and lower freight volumes are a drag on performance. Analysts have trimmed earnings estimates slightly to $0.43 per share, down from $0.44. This reflects a modest decline from the prior year.

Revenue expectations also indicate a slowdown. Consensus estimates point to $3.58 billion, representing a 2.6% year-over-year drop. Fuel price declines offer some relief, but weaker freight demand may limit upside potential.

Company EPS Estimate % Change in EPS Revenue Estimate % Change in Revenue Reporting Time
United Pacific $2.78 +2.6% $6.15B -0.2% Before market open
American Airlines $0.64 +120.7% $13.4B +2.7% Before market open
CSX Corporation $0.43 -2.3% $3.58B -2.6% After market close
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About The Author

Alex Vellor

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Invest Like a Pro
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