News & Reviews News Wire CSX delays quarterly earnings report due to review of prior period accounting

CSX delays quarterly earnings report due to review of prior period accounting

By Bill Stephens | July 9, 2024

The railroad will report second quarter results on Aug. 5 amid review of capitalization of engineering materials and labor costs

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CSX logoJACKSONVILLE, Fla. – CSX will report its second-quarter financial results about two weeks later than normal as it reviews prior period capitalization of engineering materials and labor costs, the railroad announced on Monday evening.

The railroad will release its earnings on Aug. 5. In each of the past two years its second quarter financial results were announced on July 20.

“This release date reflects the Company’s review of the capitalization of prior period engineering materials and labor. The results of this review are not expected to impact free cash flow in past or future periods,” the railroad said in a statement. “Excluding the results of this review, the Company still expects to improve both operating income and operating margin on a sequential basis in the second quarter, and management will provide more details on the earnings call.”

CSX’s stock price was down 2.4% in trading this afternoon, which underperformed its publicly traded U.S. Class I railroad peers, Norfolk Southern (down 0.4%) and Union Pacific (down 0.5%).

It’s unclear whether CSX will revise prior period earnings upward or downward, although Wall Street’s reaction suggests the market believes a downward revision is in the works.

Canadian National is scheduled to release its quarterly earnings on July 23, followed by Union Pacific and Norfolk Southern on July 25, and Canadian Pacific Kansas City on July 30.

6 thoughts on “CSX delays quarterly earnings report due to review of prior period accounting

  1. Governmental accounting (including Amtrak) cooks the books way more than any publicly-traded corporation.

  2. Accounting is an art, not a science, as is statistics. Degree should be “BA (or MA) in accounting.”

  3. “Figures don’t lie but liars figure”. Keep in mind not only is Wall Street a concern, but suggest giving a nod to the effect on the “Executive Bonus Compensation Package”.

  4. Capitalizing repairs instead of expensing them help the sacred OR. An old trick, probably begun under EHH.

  5. Sorry stock holders but we need a little more time to cook the books to keep wall street happy

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