What CSX's Earnings Are Saying About the Economy
CSX's (NASDAQ: CSX) fourth-quarter earnings and guidance need to be put into context. It's no secret that the first quarter of the year is going to be a difficult one for the industrial sector. Railroad revenue is always correlated to growth in the overall industrial economy, and given the broad-based weakness as we begin 2020, it's hardly surprising to see CSX guide toward full-year 2020 revenue to be flat to down 2% from 2019. That said, the report/guidance wasn't that bad, and there was enough in it to make investors in the industrial and transportation sectors be positive. Let's take a closer look.
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Investors in railroad stocks already know that the railroad sector is facing a difficult year. The industrial sector is currently in contraction mode -- something you can see by the widely followed Institute for Supply Management Purchasing Managers Index survey. A reading below 50 indicates a contraction in the industrial economy.
Source Fool.com
