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Research Alert: Csx Beats Q1 Consensus Estimates, Reflecting Improved Efficiency

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

CSX reported Q1 EPS of $0.43 vs. $0.34 in the prior year, beating consensus by $0.04, while revenue of $3.48B met estimates and rose 2% Y/Y. Operating margin expanded significantly to 36.0% from 30.4%, reflecting a 560-bp improvement that underscores operational efficiency progress. We view this as a solid turnaround after CSX missed expectations in the prior quarter due to weak industrial demand. Revenue growth was driven by higher merchandise pricing, strong 6% intermodal volume growth, and increased fuel surcharge revenue. CSX achieved meaningful operational improvements with train velocity up 7% to 18.9 mph, dwell time improving 7% to 10.7 hours, and carload trip plan performance rising 7% to 74%. The company delivered solid expense management as total costs declined $153M despite inflationary pressures, with labor expenses down $9M even after absorbing $41M in inflation increases, demonstrating workforce optimization benefits that reduced average rail headcount by 1,177 employees.

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Research

Research Alert: Dupixent And Newer Drugs Power Sanofi Q1 Beat; Focus Turns To Incoming Ceo

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Sanofi's Q1 2026 results beat consensus, with sales of EUR10.5B (vs. the EUR10.3B consensus) growing 6.2% Y/Y or 13.6% at CER, while its business EPS of EUR1.88 beat the EUR1.80 consensus. Dupixent continued its strong trajectory with 30.8% CER growth, while new launches like Altuviiio grew 42.2% CER on patient switches from older treatments. Sanofi reiterated its 2026 guidance for high-single-digit sales growth at CER and business EPS growth slightly faster than sales, in line with consensus. We expect Dupixent and newer drugs to support the 2026 outlook. We continue to like Dupixent's strong growth and rising contribution from new launches, which should gradually reduce its revenue concentration risk. With limited patent expiry exposure until Dupixent's 2031 cliff, we view the long-term setup as positive. However, we view that near-term sentiment will depend on incoming CEO Belen Garijo's R&D strategy to improve execution and restore confidence after recent disappointing pipeline readouts.

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Asia

Japan Stocks Close Lower After Nikkei Briefly Tops 60,000

Japanese equities closed in negative territory on Monday, reversing early gains after the benchmark briefly crossed the 60,000 level, as profit-taking set in following a tech-led rally and easing geopolitical risk tied to the extended Iran-U.S. ceasefire.The Nikkei 225 ended 0.75% lower, or fell 445.63 points, to close at 59,140.23.The decline came as investors reassessed geopolitical risks and tracked softer U.S. futures, despite no further escalation in the Middle East.The Nikkei 225 briefly hit a record 60,013.98, with early gains supported by an extended Iran-U.S. ceasefire. While the ceasefire was prolonged following mediation efforts, tensions persisted as a U.S. naval blockade remained in place and Iran seized two vessels in the Strait of Hormuz.In economic news, Japan's private sector growth slowed to a four-month low in April as a surge in manufacturing-driven by supply concerns-was offset by softer services activity, with the S&P Global Flash Japan PMI Composite Output Index easing to 52.4 from 53.Rising input costs linked to energy and a weak yen pushed prices higher, while business confidence fell to its lowest level since August 2020 amid Middle East uncertainty.On the corporate front, Japan Petroleum Exploration (TYO:1662) rose 9% after outlining plans to boost oil and gas output to 180,000 bpd by 2035 with a 1.16 trillion yen investment, shifting focus toward energy security.Toyota Motor (TYO:7203) fell 2% after a report said it is reviewing a potential data breach involving seconded staff from insurers under Tokio Marine (TYO:8766) and MS&AD Insurance Group (TYO:8725).Note (TYO:5243) dropped 8% after its founder sold 2.8% of outstanding shares in a move aimed at improving stock liquidity.

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Equities

RBC Adjusts Forecasts for TotalEnergies Over Trading Update, Higher Commodity Deck

RBC Capital Markets revised its estimates for TotalEnergies (TTE.PA, TTE.L) amid model changes following the French energy group's trading update and assumptions for higher commodity prices.The research firm on Wednesday upgraded its first-quarter estimates for integrated liquefied natural gas, refining and chemicals, and marketing and services, which offset reduced projections for upstream net earnings and integrated power. As such, RBC's forecasts for TotalEnergies' first-quarter adjusted net income increased to $5.45 billion from $5.19 billion, reflecting an 8% upside to consensus."Higher hydrocarbon production in 1Q26 qoq leaves TTE well paced to benefit from higher realisations, despite some lag effects in its portfolio," analysts said. "The trading update highlighted stable sequential trends in upstream production in the quarter, which combined with higher realisations in March, should drive up earnings materially qoq. Additionally, strong trends in LNG production, ~10% higher qoq, will support sequential growth in earnings despite flat LNG prices qoq."The stock, which remains RBC's "top pick" among supermajors, is rated outperform with an unchanged price target of 85 euros.

$TTE.L$TTE.PA