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Norfolk Southern (NSC) Beats on Q4 Earnings

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

Norfolk Souther Corporation Price and EPS Surprise | Norfolk Souther Corporation Quote

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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