Fly News Breaks for June 13, 2019
CSX, KSU, CP, CNI, NSC, UNP
Jun 13, 2019 | 04:59 EDT
Barclays analyst Brandon Oglenski downgraded Union Pacific (UNP) to Equal Weight from Overweight and lowered his price target for the shares to $170 from $190. The analyst also cut his Transportation sector view to Neutral saying he sees "real fundamental challenges set against high market expectations." Railroad equities are not properly discounting recent headwinds from softer demand and "lower supply chain urgency" across North America, Oglenski tells investors in a research note. Further, he sees increasing risk that tariff driven inflation could "damp consumer consumption" later this year, at least in the U.S. As a result, Oglenski suggests investors take some Transportation exposure off the table. He keeps Equal Weight ratings on Canadian National (CNI), Kansas City Southern (KSU) and Norfolk Southern (NSC) as well as Overweight ratings on Canadian Pacific (CP) and CSX (CSX).
News For UNP;CNI;KSU;NSC;CP;CSX From the Last 2 Days
Jul 17, 2019 | 09:09 EDT
HIGHER: Qualcomm (QCOM), up 4% after the U.S. Justice Department asked a federal appeals court to halt the enforcement of a broad antitrust ruling against the company... Orion Group (ORN), up 8% after announcing contract awards totaling approximately $52M. UP AFTER EARNINGS: Abbott (ABT), up 2%... ASML (ASML), up 6%... Seattle Genetics (SGEN), up 9%. DOWN AFTER EARNINGS: Textron (TXT), down 3%... Comerica (CMA), down 3%... Nu Skin (NUS), down 23%... CSX (CSX), down 7%. LOWER: Immuron (IMRN), down 15% after its 339K share spot secondary priced at $4.00 per share.
Jul 17, 2019 | 07:20 EDT
As previously reported, Stephens analyst Justin Long downgraded CSX to Equal Weight from Overweight after the company reported Q2 results that missed consensus, reduced its revenue guidance and provided more muted commentary on demand. Given headwinds from a softer economy, loose truckload capacity, weaker coal fundamentals, the loss of a crude-by-rail customer that represented 1% of volumes and tougher comps, Long said he thinks revenue trends could remain under meaningful pressure for six to twelve months. He cut his price target on CSX shares to $79 from $86.
Jul 16, 2019 | 18:50 EDT
UP AFTER EARNINGS: Seattle Genetics (SGEN) up 7.6%... Cintas (CTAS) up 5.4%... United Airlines (UAL) up 0.3%. ALSO HIGHER: Qualcomm (QCOM) up 5.6% after DOJ requested halt of antitrust ruling against company. DOWN AFTER EARNINGS: Nu Skin (NUS) down 17.6% after cutting Q2 and FY19 guidance... Senseonics (SENS) down 7.7% after equity offering... CSX (CSX) down 6.2%... Interactive Brokers (IBKR) down 1.5%. ALSO LOWER: Inovio (INO) down 7.3% after cutting workforce by 28% and prioritizing commercial development of its late-stage HPV assets... Tellurian (TELL) down 1.8% after being cut to Hold at Stifel... Weibo (WB) down 1.1% after being downgraded to Neutral at Credit Suisse. Movers as of 18:30ET.
Jul 16, 2019 | 16:11 EDT
CSX shares are trading at $74.50 in post-market trading.
Jul 16, 2019 | 16:02 EDT
Reports Q2 revenue $3.06B, consensus $3.14B. CSX's operating ratio set a company second quarter record of 57.4 percent, improved from 58.6 percent in the prior year. I am extremely proud of our dedicated CSX employees for once again achieving new record levels of efficiency this quarter, while also driving a significant improvement in safety," said James M. Foote, president and chief executive officer. "These results reflect the strength of our operating model, and combined with continued improvements in our best-in-class customer service, represent significant progress toward our goal of being the best run railroad in North America."
Jul 16, 2019 | 15:04 EDT
Pre-earnings options volume in CSX is 3.5x normal with calls leading puts 10:9. Implied volatility suggests the market is anticipating a move near 5.2%, or $4.10, after results are released. Median move over the past eight quarters is 3.3%.
Jul 16, 2019 | 13:49 EDT
Notable companies reporting after the market close, with earnings consensus, include CSX Corp (CSX), consensus $1.10... Cintas (CTAS), consensus $1.93... United Airlines (UAL), consensus $4.08... Fidelity National Financial (FNF), consensus 87c.
Jul 15, 2019 | 11:20 EDT
Canadian National announced that David Trent will be joining the company as part of the railway's objective of modernizing its scheduled railroading model. In his role as Vice-President and Chief Digital Officer, David will "assume the overall responsibility to build a digitally agile organization and provide the best digital thinking and solutions to the business and CN's customers," starting August 19, CN announced. In his most recent role, David was appointed Vice-President, Technology and Digital at Canfor Corporation.