Railroads in the US boomed in the 19th century but faced competition from automobiles and airlines, leading to mergers and consolidation in the industry. There are 5 Class I publicly traded railroads left today, each with high returns on equity, low debt, growing dividends, and ample return on capital. All are compound growers. The railroad business is a natural monopoly due to high capital costs and legal obstacles, resulting in low competition and stable profit margins.

Joe Hinrichs, CSX president and CEO, joins 'Squawk on the Street' to discuss his company's earnings reports, inflation, east coast labor talks, and more.

CSX Corp (NASDAQ:CSX) stock is up 4% at $34.31 at last glance, after the company's second-quarter results.

Merchandise revenues increase 5% year over year at CSX in the second quarter of 2024.

CSX Corporation has outperformed the market with a 290% returns over ten years, despite economic headwinds and a challenging environment for railroads. The company focuses on operational efficiency, new growth opportunities, and a mix of consistent dividend growth and aggressive share buybacks. Despite cyclical challenges, CSX remains a top dividend pick, with strong fundamentals, a healthy balance sheet, and promising prospects for future growth.

This marks the last peak week of the Q2 earnings season with 3,908 companies expected to report. Earnings have come in better-than-expected, but tend to be overshadowed by economic data. Outlier earnings this week include: CSX, CAT, and VFC.

CSX Corporation (NASDAQ:CSX ) Q2 2024 Earnings Conference Call August 5, 2024 4:30 PM ET Company Participants Matthew Korn - Head of Investor Relations and Strategy Joseph R. Hinrichs - President and Chief Executive Officer Mike Cory - Executive Vice President and Chief Operating Officer Kevin Boone - Executive Vice President and Chief Commercial Officer Sean Pelkey - Executive Vice President and Chief Financial Officer Conference Call Participants Brian Ossenbeck - J.P.

While the top- and bottom-line numbers for CSX (CSX) give a sense of how the business performed in the quarter ended June 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

CSX (CSX) came out with quarterly earnings of $0.49 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.49 per share a year ago.

JACKSONVILLE, Fla., Aug. 05, 2024 (GLOBE NEWSWIRE) -- CSX Corp. (NASDAQ: CSX) today announced second quarter 2024 operating income of $1.45 billion compared to $1.47 billion in the prior year period. Net earnings were $963 million, or $0.49 per diluted share, compared to $984 million, or $0.49 per diluted share, in the same period last year. Total volume of 1.58 million units for the quarter was 2% higher compared to second quarter 2023.

CSX Corporation CSX is expected to release earnings results for its second quarter, after the closing bell on Monday, Aug. 5.

CSX Stock (NYSE: CSX) will report its Q2 2024 results on Monday, August 5. We expect the company's revenues to come in at $3.7 billion and earnings at $0.49 per share, marginally ahead of the consensus estimate.