Shares of CSX Corp (NASDAQ:CSX) dropped more than 3% pre-market today after the railroad operator reported fourth-quarter results that fell short of analyst expectations. The company struggled with a challenging operating environment, citing weather disruptions and infrastructure setbacks.

CSX reported earnings per share of $0.38, missing Wall Street’s consensus estimate of $0.44. Revenue for the quarter came in at $3.54 billion, narrowly below analysts’ projections of $3.59 billion.

The company highlighted the impact of significant challenges in 2024, including disruptions from major hurricanes and the Key Bridge outage earlier in the year. Despite these setbacks, the company emphasized its commitment to maintaining high levels of customer satisfaction.

In contrast, competitor Union Pacific delivered stronger results, exceeding profit expectations thanks to improved shipping volumes and effective pricing strategies. However, Union Pacific’s performance was tempered by lower fuel surcharge revenues and a less profitable cargo mix.

CSX’s results underscore the difficulties the railroad faced in navigating external disruptions, while its rival Union Pacific managed to leverage favorable conditions more effectively, widening the competitive gap. Investors will be watching closely as CSX seeks to address these headwinds heading into 2025.