Ahead of its year-end earnings report Jan. 23, one analyst is forecasting positive trends for CSX Corp.
The railroad company is generally the first Jacksonville-based company to report results every quarter and it’s also one of the first large U.S. industrial companies to report, so its earnings can be a bellwether of trends in the national economy.
The trends may not be reflected in its fourth-quarter report but Jefferies analyst Stephanie Moore is projecting an upward turn in the freight market which will help CSX.
Moore raised her rating on CSX from “hold” to “buy” in a Jan. 10 report on transportation on logistics stocks.
“Closing the door on 2024 and as the current freight recession approaches its third year, we’re increasingly positive on the freight backdrop for 2025,” she said in her report.
“Coming out of this current freight recession, we’re constructive on CSX’s ability to see accelerating financial performance.”
Moore thinks CSX is a good play for investors seeking to profit from freight market growth as a domestic-focused railroad.
“In our view, we think CSX’s largely insulated geographic presence should be considered positive as investors grapple with the puts and takes of potential tariff and trade policy changes between the U.S. and China, Mexico, and Canada,” she said.
“Furthermore, we’re constructive on southeast industrial development and CSX’s advantage in the space. Compared to the previous decade which saw industry leaving the rail network, the company has seen a sea change and expects to see a tailwind with industry coming back to the U.S.”
Moore maintained a “hold” rating on Jacksonville-based trucking company Landstar System Inc. in her report on the transportation industry.
“We believe it is more likely that earnings estimates are coming down, not up, and we see limited catalysts for Landstar shares to outperform in this environment while the spot market remains muted,” she said.
“That said, we expect continued strong cash flow over the next several quarters, leading to continued share repurchases and potentially a special dividend, which the company has a history of paying every few years.”
A much smaller Jacksonville-based rail operator, Pinsly Railroad Co., announced Jan. 10 it reached an agreement with Columbia County to provide rail service to an industrial park in Lake City.
Pinsly will provide rail service to the 2,622-acre North Florida Mega Industrial Park.
The company said in a news release the park has been in development by Columbia County and Weyerhaeuser for more than 15 years and recently announced a manufacturer of high-efficiency liquid fertilizer called AgroLiquid will be its first tenant.
Pinsly, which operates seven other short-line railroads, said its service for AgroLiquid will benefit Florida’s agricultural economy.
“We also look forward to working with Columbia County on future developments within the park, which will greatly benefit the surrounding communities,” Pinsly Chief Commercial Officer Cassie Dull said in the release.
Firehouse Subs, the restaurant chain founded in 1994 in Jacksonville, is expanding to Brazil.
Firehouse’s parent company, Restaurant Brands International Inc., said it entered into a joint venture partnership to open restaurants in Brazil that will be its first restaurants in South America.
Toronto-based RBI has been seeking to expand Firehouse internationally since it acquired the Jacksonville-based chain from founders, and former firefighters, Robin and Chris Sorensen for $1 billion in December 2021.
Firehouse opened its first restaurant outside of North America in Switzerland in June 2023 and has expanded into Mexico, the United Arab Emirates and Albania since then.
It has more than 1,300 restaurants in the U.S., Canada and Puerto Rico.
“I believe Firehouse Subs has an exciting runway for growth, and we have set ambitious expansion plans around the world,” said Thiago Santelmo, president of RBI International, in a news release about the Brazil joint venture.
Besides Firehouse, RBI also owns the Burger King, Popeyes and Tim Hortons chains.
The company is partnering with Iuri Miranda to operate the Brazil restaurants. Miranda is the former CEO of Zamp S.A., which is the master franchisee for Burger King and Popeyes in Brazil.
A rise in cotton prices led to the demise of the Salt Life retail apparel store chain, according to a bankruptcy filing by its parent company.
Delta Apparel Inc. filed a Chapter 11 reorganization petition June 30 in U.S. Bankruptcy Court for the District of Delaware and in September, it sold the Salt Life apparel brand in a court auction.
Salt Life, founded in Jacksonville Beach in 2003, was acquired by Delta in 2013 and grew to a chain of 28 stores.
Duluth, Georgia-based Delta did not own the three Salt Life Food Shack restaurants in Northeast Florida, so the restaurants were not impacted by the bankruptcy filing.
Delta filed its Chapter 11 reorganization plan and disclosure statement in court Dec. 23 that said the company’s problems started two years before the bankruptcy filing.
“During 2022, cotton prices surged, resulting in increased costs to Delta and declining liquidity,” the disclosure statement said.
Delta then experienced significant reductions in demand beginning in 2023.
“The Debtors continued to experience a deteriorating liquidity position and were unable to raise additional capital to fund operations,” the filing said.
Hilco Consumer-Retail Group and Iconix International Inc. acquired the apparel brand with a bid of $38.74 million in a court auction and announced in September it would close the stores, including Salt Life’s flagship store at 240 S. Third St. in Jacksonville Beach and another store at the St. Augustine Premium Outlets mall at Interstate 95 and Florida 16.
The new owners are transitioning the Salt Life brand toward a focus on a wholesale and e-commerce business.
Besides selling Salt Life, Delta also sold its MJ Soffe brand in the court auction.
There were no bids on its remaining Delta Apparel brand, and those assets and some real estate assets are being liquidated as part of its Chapter 11 plan, with proceeds from asset sales going to creditors.
A confirmation hearing on the Chapter 11 plan is scheduled for Feb. 25.
Treace Medical Concepts Inc. said Jan. 13 preliminary results show it recorded fourth-quarter revenue of $68.4 million to $68.8 million, up 10% from the fourth quarter of 2023.
The Ponte Vedra-based company, which produces surgical treatments for bunions and other foot issues, said revenue for all of 2024 rose about 12% to between $209 million and $209.4 million, in line with its most recent forecasts.
However, Treace Medical a year ago had been forecasting revenue of $220 million to $225 million. The company’s stock dropped sharply in May when it first said revenue would be below its original forecast.
CEO John Treace said in a news release that the company expects to grow in 2025 with the addition of new product launches.
Treace Medical will report its forecasts for 2025 when it releases its full earnings report for 2024 on Feb. 27.
Acosta Group announced Jan. 9 that Brian Driscoll was appointed as nonexecutive chairman of its board of directors.
He succeeds Grant LaMontagne, who completed a five-year rotation as chairman and will remain on the board of directors of the Jacksonville-based sales and marketing firm.
Acosta provides services that connect consumer packaged goods companies with retailers.
Driscoll has more than 40 years of experience in the consumer packaged goods industry, including stints as CEO of Snyders-Lance Inc., Diamond Foods Inc. and Hostess Brands Inc.
“Brian’s extensive leadership background in CPG, with unique experiences in both executive and board chair roles for publicly traded and private equity-owned companies, will be invaluable to Acosta Group,” Acosta CEO Brian Wynne said in a news release.
GEE Group Inc. paid $1.5 million to buy Atlanta-based Hornet Staffing Inc., according to a Jan. 10 Securities and Exchange Commission filing.
The Jacksonville-based staffing firm announced the acquisition in a Jan. 6 news release but did not disclose the terms.
GEE said in the SEC filing the purchase price consisted of $1.1 million in cash and a $400,000 promissory note.
LocatorX, which was founded in Jacksonville in 2014 but moved its headquarters to Atlanta five years later, is returning to Florida.
The provider of logistics technology announced Jan. 8 it is moving its headquarters to NeoCity, a 500-acre technology district in Osceola County that started in 2016.
LocatorX said in a news release that NeoCity is emerging as a technology hub that will help its growth.
“The new location places us at the epicenter of semiconductor innovation and provides access to talent from surrounding universities,” CEO Chester Kennedy said in the release.
LocatorX said the move to NeoCity will be completed by the end of January.
Safe & Green Holdings Corp., a maker of modular structures, announced Jan. 7 that Michael McLaren was appointed CEO.
The company said McLaren has more than 30 years of leadership experience in the energy industry.
Safe & Green was headquartered in Jacksonville for a year, after moving from Brooklyn, New York, in January 2022.
However, the company announced in January 2023 it was moving its headquarters again to Miami.