Norfolk Southern NSC reported fourth-quarter 2017 earnings per share (excluding $12.10 from non-recurring items) of $1.69, beating the Zacks Consensus Estimate of $1.56. Earnings increased 19% on a year-over-year basis.
How Was the Estimate Revision Trend?
Investors should note that the earnings estimate revisions for Norfolk Southern depicted a decent picture prior to the earnings release. The stock had seen the Zacks Consensus Estimate for fourth-quarter earnings being revised 0.7% upward over the last 90 days
Moreover, Norfolk Southern an impressive earnings surprise history. Even before posting the earnings beat in the fourth-quarter, the company delivered positive surprises in each of the past four quarters. The average earnings beat was 5.9%.
Norfolk Souther Corporation Price and EPS Surprise
Revenues Better Than Expected
Norfolk Southern recorded railway operating revenues of $2.7 billion, which surpassed the Zacks Consensus Estimate of $2.64 billion. Moreover, it increased 7% year over year.
Key Q4 Statistics: Norfolk Southern revealed that adjusted operating ratio (operating expenses as a percentage of revenues) in the reported quarter improved 170 basis points (year over year) to 67.7%. Overall volumes grew 5% on the back of impressive performances at key segments like coal and intermodal. Adjusted operating ratio improved 150 basis points to 67.4% in 2017. The company also raised its quarterly dividend by 18% to 72 cents per share.
Zacks Rank: Currently, Norfolk Southern carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Stock Movement: The earnings report pleased investors. Consequently, shares of the company were up in pre-market trading at the time of writing.
Check back later for our full write up on this Norfolk Southern earnings report later!
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