Norfolk Southern Earnings: Here’s Why Shares are Down Now
Norfolk Southern Corp. (NYSE:NSC) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.39%.
Norfolk Southern Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 8.75% to $1.46 in the quarter versus EPS of $1.60 in the year-earlier quarter.
Revenue: Decreased 2.51% to $2.8 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Norfolk Southern Corp. reported adjusted EPS income of $1.46 per share. By that measure, the company missed the mean analyst estimate of $1.49. It missed the average revenue estimate of $2.85 billion.
Quoting Management: “In the second quarter, Norfolk Southern delivered solid results, supported by growth in our chemicals, intermodal, and automotive businesses, despite continuing weakness in the coal markets,” said CEO Wick Moorman. “We continue to focus on service efficiency and velocity, which is enabling us to control operating expenses and deliver superior performance to our customers.”
Key Stats (on next page)…
Revenue increased 2.34% from $2.74 billion in the previous quarter. EPS increased 19.67% from $1.22 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.43 and has not changed. For the current year, the average estimate is a profit of $5.59, which is the same with that ninety days ago.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)