- Norfolk Southern‘s third-quarter adjusted earnings per share (EPS) was $3.25, exceeding the previous year’s $2.65 and the estimated $3.11.
- The railway operating revenue for the quarter was $3.1 billion, marking a 4.3% increase year-over-year and surpassing the estimated $3.09 billion.
- The adjusted operating ratio, a key efficiency metric, improved to 63.4% from 69.1% year-over-year, better than the estimated 64.8%.
- The reported EPS for the third quarter was $4.85.
- Norfolk Southern is “on track” to meet its adjusted operating ratio targets for the second half and full year of 2024.
Norfolk Southern on Smartkarma
Analysts at Baptista Research on Smartkarma have been closely covering Norfolk Southern Corporation, providing key insights into the company’s financial performance and strategic moves. In their report titled “Norfolk Southern Corporation: Leveraging Intermodal Strengths To Drive Growth! – Major Drivers,” they highlighted mixed outcomes from the second quarter of 2024, showcasing both ongoing challenges and notable advances in operational efficiencies. President and CEO Alan Shaw, along with key executives, led the discussion, emphasizing the significant improvement in the operating ratio to 65.1%, indicating a substantial margin enhancement of 480 basis points sequentially.
In another insightful report titled “Norfolk Southern Corporation: How Is Enhanced Operational Efficiency & Productivity Boost Impacting Their Bottom-Line? – Major Drivers,” Baptista Research discussed the company’s strategic growth and prudent operational strategies in the first quarter of 2024. The analysts emphasized Norfolk Southern‘s balanced approach to achieving top-tier earnings with a competitive margin, focusing on customer service, productivity, and growth while prioritizing safety measures. CEO Alan Shaw highlighted the company’s commitment to safety and service in 2023, aiming to protect the company’s franchise and shareholders while maintaining one of the safest networks in North America.
A look at Norfolk Southern Smart Scores
Factor | Score | Magnitude |
---|---|---|
Value | 2 | |
Dividend | 3 | |
Growth | 3 | |
Resilience | 2 | |
Momentum | 4 | |
OVERALL SMART SCORE | 2.8 |
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
Analysts utilizing Smartkarma Smart Scores to gauge Norfolk Southern‘s long-term outlook have identified several key factors. With a solid momentum score of 4, indicating positive market momentum, the company seems to be on a strong trajectory. Additionally, the growth and dividend scores of 3 each suggest a promising future in terms of potential expansion and dividend payouts for investors.
On the other hand, Norfolk Southern‘s value and resilience scores of 2 each imply some areas that may need further attention. Despite this, the company’s overall outlook appears optimistic, especially considering its vital role in transporting goods across the United States from the Southeast, East, and Midwest regions to various ports for international trade.
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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