- Norfolk Southern reported an adjusted EPS of $3.06, beating last year’s $2.95 and exceeding the estimated $2.87.
- The company’s actual EPS was $3.25, significantly higher than last year’s $1.56 and surpassing the estimated $2.88.
- Railway operating revenue matched the estimate at $3.04 billion, showing a 2.1% year-over-year increase.
- Merchandise revenue rose by 4.3% year-over-year to $1.90 billion, close to the estimate of $1.91 billion.
- Coal revenue fell by 2.7% year-over-year to $398 million but exceeded the estimate of $379.5 million.
- Intermodal revenue decreased by 0.4% year-over-year to $742 million, below the estimate of $759.7 million.
- The adjusted operating ratio improved to 65.1% from last year’s 80.7%, better than the estimated 66.6%.
- The company forecasts revenue growth of about 1% to 3% for the year, compared to an earlier prediction of around 3%.
- In the second quarter, insurance recoveries related to the Eastern Ohio incident were greater than the incurred costs.
- Norfolk Southern expects to achieve a second-half operating ratio of 64% to 65%, a 400 to 500 basis points improvement year-over-year.
Norfolk Southern on Smartkarma
On Smartkarma, renowned independent analysts from Baptista Research have been closely covering Norfolk Southern Corporation, providing valuable insights for investors. In one of their reports titled “Norfolk Southern Corporation: How Is Enhanced Operational Efficiency & Productivity Boost Impacting Their Bottom-Line? – Major Drivers,” Norfolk Southern‘s first quarter of 2024 was highlighted as a period of strategic growth and prudent operational strategies. The company’s focus on customer service, productivity, and growth, coupled with strong safety measures, has positioned them for top-tier earnings in the industry. Alan Shaw, the company’s president and CEO, emphasized the importance of safety and service in 2023 to safeguard the company’s franchise and shareholders.
In another report titled “Norfolk Southern Corporation: A Tale Of Expansion & Investment in Intermodal Operations! – Major Drivers,” Baptista Research discussed Norfolk Southern‘s Fourth Quarter 2023 Earnings. Despite facing challenges such as network disruptions, a weak freight market, and a major train derailment in Eastern Ohio, the company showcased resilience and commitment to safety and service. This mixed performance underscores Norfolk Southern‘s dedication to navigating through obstacles and striving for operational excellence in the transportation industry.
A look at Norfolk Southern Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Norfolk Southern Corporation is positioned for a stable long-term outlook. With moderate ratings across Value, Growth, and Momentum, the company demonstrates a steady performance trajectory. While its Value and Resilience scores are average, the company’s Dividend and Growth scores indicate promising prospects. Norfolk Southern‘s consistent momentum further underscores its potential for sustained growth in the future.
Norfolk Southern Corporation, a leading provider of rail transportation services, operates primarily in key regions of the United States, facilitating the movement of various goods across the country. With a strategic focus on transporting raw materials, intermediate products, and finished goods, the company plays a vital role in connecting businesses to markets efficiently. Additionally, Norfolk Southern‘s logistics network extends to international trade, serving overseas freight through key ports along the Atlantic and Gulf Coast, showcasing its significance in the global supply chain.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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