News

Norfolk Southern Corporation NSC is scheduled to report fourth-quarter 2024 results on Jan. 29, before market open.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The Zacks Consensus Estimate for NSC’s fourth-quarter 2024 earnings has been revised downward by 3.6% in the past 90 days to $2.95. However, the consensus mark implies a 4.2% rise from the year-ago actuals. The Zacks Consensus Estimate for NSC’s fourth-quarter 2024 revenues is pegged at $3.03 billion, indicating a 1.43% decline year over year.

Norfolk Southern Corporation Price and EPS Surprise

Norfolk Southern Corporation price-eps-surprise | Norfolk Southern Corporation Quote

NSC’s earnings have lagged the Zacks Consensus Estimate in two of the preceding four quarters and surpassed the mark in the remaining two quarters, delivering an average miss of 1.58%.

Let’s see how things have shaped up for NSC this earnings season.

Factors Likely to Have Influenced NSC’s Q4 Performance

The top-line performance in the fourth quarter is expected to have been hurt by weakness across its Intermodal and Coal segments, partially offset by strength across its Merchandise segment.

The consensus mark for Intermodal segment revenues is pegged at $786million, implying a 1% decrease from the fourth quarter of 2023 reported number. The consensus mark for Coal segment revenues is pegged at $379million, implying an 11.9% decrease from the fourth quarter of 2023 reported number. The Zacks Consensus Estimate for fourth-quarter Merchandise revenues is pegged at $1.86 billion, indicating 0.6% growth from the year-ago reported figure.

E-commerce demand has been supporting Norfolk Southern’s shipment volumes. The company utilizes the Precision Scheduled Railroading operating plan to reduce costs and enhance services for optimal asset utilization. NSC’s strong free cash flow generating ability supports its consistent shareholder-friendly activities.

On the flip side, weakness in freight revenues and volumes does not bode well for NSC. The company's high debt load and share price volatility are also cause for concern.

What Our Model Says About NSC

Our proven model predicts an earnings beat for Norfolk Southern this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Norfolk Southern has an Earnings ESP of +0.80% and a Zacks Rank #3.

Highlights of NSC’s Q3 Earnings

NSC's third-quarter 2024 earnings (excluding $1.6 from non-recurring items) of $3.25 per share beat the Zacks Consensus Estimate of $3.10 and increased 22.6% year over year, owing to lower costs.

Railway operating revenues were $3.05 billion in the third quarter, lagging the Zacks Consensus Estimate of $3.09 billion. The top line increased 2.7% year over year, with the Merchandise and Intermodal segments registering improvement in revenues.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

C.H. Robinson CHRW has an Earnings ESP of +5.71% and a Zacks Rank #2 at present. CHRW is scheduled to report fourth-quarter 2024 earnings on Jan. 29. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for fourth-quarter 2024 earnings has been revised 7.7% upward in the past 90 days. CHRW’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average beat being 10.3%.

Southwest Airlines LUV has an Earnings ESP of +6.78% and a Zacks Rank #2 at present. LUV is set to release third-quarter results on Jan. 30. Upbeat air-travel demand is likely to have aided the quarterly performance.

The Zacks Consensus Estimate for fourth-quarter 2024 earnings has moved north 32.2% in the past 90 days. LUV’s earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, delivering an average surprise of 111.62%.

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