2 Companies Seeing Lower Stock Prices After Earnings

Norfolk Southern Corporation (NYSE:NSC) reported its results for the fourth quarter. Net income for Norfolk Southern Corporation rose to $480 million ($1.42 per share) vs. $402 million ($1.09 per share) in the same quarter a year earlier. This marks a rise of 19.4% from the year earlier quarter. Revenue rose 16.9% to $2.8 billion from the year earlier quarter. NSC beat the mean analyst estimate of $1.40 per share. Analysts were expecting revenue of $2.83 billion.

“Norfolk Southern achieved all-time records for revenues, operating income, net income, and earnings per share during 2011, and set fourth-quarter records for revenues, net income, and earnings per share,” said Norfolk Southern CEO Wick Moorman. “In 2012 we will remain committed to enhancing our service product, maintaining the safety and quality of our rail network, improving operational efficiency, and supporting growth. Our strong capital program of $2.4 billion will include substantial investments along our Crescent Corridor, a public-private partnership to create a high-capacity, truck-competitive intermodal freight rail route between the Gulf Coast and Northeast.”

Competitors to Watch: CSX Corporation (NYSE:CSX), Kansas City Southern (NYSE:KSU), Union Pacific Corporation (NYSE:UNP), Burlington Northern Santa Fe, LLC (BNI), Providence & Worcester Railroad Co. (NASDAQ:PWX), Canadian National Railway (NYSE:CNI), Canadian Pacific Railway Ltd. (NYSE:CP), Genesee & Wyoming Inc. (NYSE:GWR) and RailAmerica, Inc. (NYSE:RA).

Air Products and Chemicals Inc. (NYSE:APD) reported its results for the first quarter. Net income for the chemicals company fell to $248.1 million ($1.16 per share) vs. $268.6 million ($1.23 per share) a year earlier. This is a decline of 7.6% from the year earlier quarter. Revenue rose 1.3% to $2.42 billion from the year earlier quarter. APD reported adjusted net income of $1.36 per share. By that measure, the company fell in line with the mean estimate of $1.36 per share. It fell short of the average revenue estimate of $2.53 billion.

John McGlade, chairman, president and chief executive officer, said, “As we expected, economic growth continued to slow this quarter, depressing volumes and limiting earnings growth. In spite of these economic headwinds, we did improve our operating performance, while lowering costs and winning significant new tonnage contracts.”

Competitors to Watch: Airgas, Inc. (NYSE:ARG), Praxair, Inc. (NYSE:PX), Rentech, Inc. (AMEX:RTK).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com