- Norfolk Southern‘s fourth-quarter adjusted earnings per share (EPS) was $3.04, surpassing estimates of $2.96 and improving from $2.83 year-over-year.
- Reported EPS was $3.23, significantly up from $2.32 year-over-year.
- Railway operating revenue stood at $3.02 billion, a decrease of 1.6% year-over-year, in line with estimates.
- The adjusted operating ratio improved to 64.9% from the previous year’s 68.8%, beating the estimate of 65.5%.
- For the third consecutive quarter, insurance recoveries from the Eastern Ohio incident exceeded the additional costs.
- Excluding the impact of lower fuel surcharge revenue, Norfolk Southern‘s railway operating revenues increased by $228 million or 2%, driven by a 5% volume growth compared to the full year of 2023.
Norfolk Southern on Smartkarma
On Smartkarma, the independent investment research network, top analysts like Baptista Research are covering Norfolk Southern Corporation closely. In a bullish analysis titled “Norfolk Southern Corporation: An Insight Into Their Enhanced Network and Operational Efficiency Strategy! – Major Drivers,” Norfolk Southern‘s strong performance in the third quarter of 2024 was highlighted. Despite facing challenges like natural disasters, the company managed a 3% increase in revenue and an impressive 23% surge in adjusted earnings per share. A key point of success was the significant improvement in the adjusted operating ratio, which dropped by 570 basis points to 63.4%.
In another optimistic report by Baptista Research, “Norfolk Southern Corporation: Leveraging Intermodal Strengths To Drive Growth! – Major Drivers,” the focus was on the company’s second quarter 2024 financial results. The analysis showcased a mix of ongoing challenges and operational efficiency improvements. Notable figures included an operating ratio (OR) of 65.1%, highlighting a substantial margin enhancement of 480 basis points sequentially. President and CEO Alan Shaw led the discussion, emphasizing the company’s progress in leveraging its intermodal strengths for growth.
A look at Norfolk Southern Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
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 is positioned with a solid overall outlook. With a Value score of 3, the company is seen as fairly valued in the market, indicating potential for growth. Its Dividend score of 3 suggests a stable dividend payout to investors. Norfolk Southern also maintains a Growth score of 3, reflecting its potential for future expansion and profitability. However, the company’s Resilience score of 2 highlights some degree of vulnerability to market fluctuations. On the positive side, Norfolk Southern‘s Momentum score of 4 indicates strong market momentum, showcasing investor interest and positive price performance.
Norfolk Southern Corporation offers rail transportation services across key regions in the United States, enhancing its market presence and reaching a wide customer base. Its operations focus on transporting various goods, from raw materials to finished products, facilitating essential supply chain movements. Moreover, the company extends its reach beyond domestic borders by handling overseas freight through strategic ports along the Atlantic and Gulf Coasts. With a balanced set of Smart Scores, Norfolk Southern appears to be strategically positioned for long-term growth and resilience in the rail transportation sector.
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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