Norfolk Southern Corporation (NSC), owns two major freight railroads, Norfolk Southern Railway Company and Norfolk Western Railway Company. The company is primarily engaged in the rail transportation of raw material, intermediate products and finished goods, primarily in Southeast, East and Midwest United States and, via interchange with rail carriers to and from the rest of country.
Norfolk Southern is riding high on gains from an improving U.S. economy, substantial surge in manufactured and retail goods and a sharp rebound in many end markets. However, declining crude oil prices may force the oil producers to curtail production, thus affecting the company’s profitability in the upcoming quarters.
Currently, Norfolk Southern Corporation has a Zacks Rank #3 (Hold), but that could definitely change following Canadian Pacific Railway’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Norfolk Southern Corporation meets earnings. Our consensus earnings estimate called for EPS of $1.64/share which was in line with the reported EPS.
Revenue: Norfolk Southern Corporation reported revenues of $2,870 million. This missed our consensus estimate of $2,931 million.
Key Stats to Note: Norfolk Southern Corporation reported declining coal volumes for the reported quarter owing to soft coal export market. It also witnessed decline in revenue during the quarter affected by drop in coal business.
Stock Price: Norfolk Southern Corporation shares fell 1.24%. Clearly, the initial reaction to the release is negative.
Check back later for our full write up on this Norfolk Southern Corporation earnings report later!
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