- For the first quarter, Norfolk Southern‘s adjusted EPS was $2.49, missing estimates that had set the figure at $2.55.
- The operating revenue for the railway was $3.00 billion, showing a decrease of 4.1% year-over-year, again falling short of the estimated $3.02 billion.
- The merchandise revenue was reported to be $1.86 billion, decreasing by 0.8% as compared to last year. This figure met the estimates exactly.
- Coal revenue for the year is reported at $396 million, which is a 10% decrease year-on-year and it also fall short of the estimates which were set at $408.4 million.
- The revenue from the intermodal was reported at $745 million, a decrease of 8.5% year-over-year, not reaching the estimated $758.2 million.
- The adjusted operating ratio for the company was 69.9% which is a significant rise from last years 77.3% but still fell short of the estimated 69.6%.
- The company is forecasting its revenue to increase by 3% for the year.
- CEO Alan H. Shaw confirmed that the first quarter of 2024 aligns with their preliminary release, despite macroeconomic challenges and the continued impact of their revenue mix being biased towards lower-rated traffic.
- The company currently holds 13 buys, 12 holds, and 0 sells.
Norfolk Southern on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are closely following Norfolk Southern Corporation. In a recent report titled “Norfolk Southern Corporation: A Tale Of Expansion & Investment in Intermodal Operations! – Major Drivers,” Baptista Research highlighted the company’s mixed performance in the Fourth Quarter of 2023. Norfolk Southern faced challenges such as network disruptions and a weak freight market, exacerbated by a significant train derailment in Eastern Ohio. Despite these obstacles, the company remained resilient, showcasing dedication to safety and service.
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
Norfolk Southern Corporation, a rail transportation services provider, is facing a mixed long-term outlook based on the Smartkarma Smart Scores. With a moderate Value score of 2, the company may not be deemed as undervalued by the market. In terms of Dividend and Growth, Norfolk Southern scored a respectable 3, indicating a decent performance in these areas. However, the company scored a lower 2 in Resilience, suggesting potential vulnerabilities. On a positive note, Norfolk Southern achieved a strong Momentum score of 4, indicating a favorable trend in market performance.
Despite the varied Smart Scores, Norfolk Southern Corporation remains a key player in the transportation sector. Specializing in the transportation of raw materials, intermediate products, and finished goods across the Southeast, East, and Midwest regions of the United States, the company also facilitates overseas freight transportation through various Atlantic and Gulf Coast ports. Investors evaluating Norfolk Southern should consider the combination of factors represented by the Smart Scores to assess the company’s overall long-term potential.
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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