Rail Merger Talk and Economic Clues to Dominate Class I Earnings Calls
CSX will report its third-quarter financial results on Thursday, marking the beginning of the rail industry's earnings season. The earnings call will be the first time investors hear from new CEO Steve Angel, who replaced Joe Hinrichs last month.
Wall Street analysts are expected to closely examine Angel's words regarding the direction CSX will take, as well as his stance on mergers. This comes after activist investors criticized Hinrichs for not engaging in merger talks earlier this year.
Notably, the Union Pacific and Norfolk Southern merger was announced on July 29, during the NS second-quarter earnings call. This development is likely to influence the discussion during the earnings calls.
Activist investors had been critical of Hinrichs for not engaging in merger talks earlier this year.
The earnings calls are expected to provide clues about the economy and the rail industry's future. Investors will be watching for insights from the new CEO and the company's strategy moving forward.
Author's summary: Rail merger talks and economic clues will dominate Class I earnings calls.