Earnings Alerts

Norfolk Southern (NSC) Earnings: 1Q Merchandise Revenue Aligns with Expectations Amid Mixed Performance Across Segments

  • Norfolk Southern‘s merchandise revenue for the first quarter was $1.86 billion, matching both last year’s figures and analyst estimates.
  • Coal revenue experienced a decline of 6.6% year-over-year, totaling $370 million, slightly above the estimate of $365.2 million.
  • Intermodal revenue increased by 2% year-over-year, reaching $760 million, exceeding the estimate of $756.4 million.
  • Analyst recommendations for Norfolk Southern include 18 buy ratings, 9 hold ratings, and 1 sell rating.

Norfolk Southern on Smartkarma

Analysts on Smartkarma like Baptista Research are bullish on Norfolk Southern, a railroad company. In a recent report titled “Norfolk Southern: Can Its Strong Pricing Strategy Help Capitalize on Emerging Market Opportunities? – Major Drivers,” Baptista Research highlighted the company’s solid fourth-quarter performance in 2024. Norfolk Southern showed operational efficiency with a 3% volume increase and a 2% rise in revenue excluding fuel. Notably, the adjusted operating ratio improved to 65.8%, surpassing previous guidance. The company’s full-year improvements led to a 64.1% operating ratio in the second half.

Another report by Baptista Research, titled “Norfolk Southern Corporation: An Insight Into Their Enhanced Network and Operational Efficiency Strategy! – Major Drivers,” further praised Norfolk Southern‘s performance in the third quarter of 2024. Despite facing natural disasters and operational challenges, the company managed to report a 3% revenue increase and an impressive 23% growth in adjusted earnings per share. A significant operational highlight was the 570 basis point decline in the adjusted operating ratio to 63.4%. Analysts are optimistic about Norfolk Southern‘s strategies and performance in navigating complex market conditions.


A look at Norfolk Southern Smart Scores

FactorScoreMagnitude
Value3
Dividend3
Growth3
Resilience3
Momentum4
OVERALL SMART SCORE3.2

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, is positioned with an overall positive outlook based on the Smartkarma Smart Scores. With a balanced score across multiple key factors such as Value, Dividend, Growth, Resilience, and Momentum, Norfolk Southern appears to have a solid long-term trajectory. The company’s ability to deliver consistent performance in these areas indicates a strong foundation for future growth and stability in the rail transportation sector.

Norfolk Southern‘s Smartkarma Smart Scores reflect a company that is well-rounded in terms of value, dividend yield, growth potential, resilience, and momentum. This suggests that Norfolk Southern is well-equipped to navigate various market conditions and sustain its operations effectively. With its strategic positioning in transporting raw materials, intermediate products, and finished goods across key regions in the United States, along with its involvement in overseas freight transportation through different ports, Norfolk Southern seems to have a promising long-term outlook in the rail 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.


 

πŸ’‘ 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

  • βœ“ Unlimited Research Summaries
  • βœ“ Personalised Alerts
  • βœ“ Custom Watchlists
  • βœ“ Company Analytics and News
  • βœ“ Events & Webinars