- Adjusted EPS: $3.06, beating the estimate of $2.87, and up from $2.95 year over year (y/y).
- Reported EPS: $3.25, surpassing the estimate of $2.88, and significantly higher than last year’s $1.56.
- Railway Operating Revenue: $3.04 billion, a 2.1% increase y/y, matching estimates.
- Merchandise Revenue: $1.90 billion, up 4.3% y/y, slightly missing the estimate of $1.91 billion.
- Coal Revenue: $398 million, a 2.7% decline y/y, but above the estimate of $379.5 million.
- Intermodal Revenue: $742 million, down 0.4% y/y, and below the estimate of $759.7 million.
- Total Carloads: 1.74 million, up from 1.658 million y/y, matching estimates.
- Revenue Per Carload: $1,747, a 2.8% decrease y/y, aligning with estimates.
- Adjusted Operating Ratio: 65.1%, improving from 80.7% y/y and better than the estimate of 66.6%.
- Year Forecast: Revenue growth anticipated at around 1%, down from the previous forecast of about 3%.
- 2Q Incident Impact: Eastern Ohio incident led to insurance recoveries exceeding the incurred costs for the quarter.
- Second Half Outlook: Projected operating ratio of 64% – 65%, marking a 400-500 basis point improvement y/y.
- Analyst Recommendations: 15 buys, 11 holds, and 1 sell.
Norfolk Southern on Smartkarma
Analyst coverage on Norfolk Southern on Smartkarma by Baptista Research has shown a positive outlook, with a bullish sentiment. In the report “Norfolk Southern Corporation: How Is Enhanced Operational Efficiency & Productivity Boost Impacting Their Bottom-Line? – Major Drivers,” the company’s strategic growth and operational strategies in the first quarter of 2024 were highlighted. Norfolk Southern focused on delivering top-tier earnings with competitive margins, emphasizing customer service, productivity, and growth. President and CEO Alan Shaw emphasized the prioritization of safety and service in 2023 to protect the company’s franchise and shareholders, maintaining one of the safest networks in North America.
In another report by Baptista Research titled “Norfolk Southern Corporation: A Tale Of Expansion & Investment in Intermodal Operations! – Major Drivers,” mixed results for the company’s Fourth Quarter 2023 Earnings were discussed. Despite facing challenges such as network disruptions and a weak freight market, exacerbated by a train derailment in Eastern Ohio, Norfolk Southern displayed resilience and commitment to safety and service. The reports by Baptista Research provide a comprehensive overview of Norfolk Southern‘s performance and strategies, offering valuable insights for investors on Smartkarma.
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
Norfolk Southern Corporation, a company that provides rail transportation services, has been assessed across various factors to gauge its long-term outlook. According to Smartkarma Smart Scores, which range from 1 to 5 with higher scores indicating better performance on that factor, Norfolk Southern receives a mixed evaluation. With a Value score of 2, the company shows some potential for growth at a reasonable price. The Dividend and Growth scores both at 3 signify a moderate outlook in terms of dividend yield and growth prospects. In terms of Resilience, Norfolk Southern scores a 2, indicating some vulnerability to economic uncertainties. However, with a Momentum score of 3, the company demonstrates a fair level of market momentum.
Overall, Norfolk Southern‘s Smartkarma Smart Scores showcase a company with a decent dividend yield and growth potential, albeit with room for improvement in terms of value and resilience. As Norfolk Southern primarily operates in the Southeast, East, and Midwest regions of the United States, there may be opportunities for expansion and increased efficiency in its transportation services. By leveraging its strategic location and existing infrastructure, Norfolk Southern could potentially enhance its overall performance and capitalize on the growth opportunities in the transportation industry.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
