Norfolk Southern Q3 adj EPS beats estimates on increased rail demand

Norfolk Southern

Yesterday 13:24

Overview
US freight railroad's Q3 revenue rose 14% yr/yr, slightly beating analyst expectations
Adjusted EPS for Q3 rose 10% yr/yr, beating analyst expectations
Company performance aided by increased rail demand and productivity gains

Outlook
Company expects growth opportunities from investments in network capacity and resilience

Result Drivers
COST CONTROL - Co said disciplined cost control helped support earnings growth despite higher fuel costs
RAIL DEMAND - Increased demand for rail service, partly due to a tighter trucking market, contributed to revenue growth
PRODUCTIVITY GAINS - Productivity improvements across the network aided earnings growth

Company press release: ID:nPn7DcpGja

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Operating Revenue
Slight Beat*
$3.50 bln
$3.48 bln (16 Analysts)
Q3 Adjusted EPS
Beat
$3.62
$3.47 (19 Analysts)
Q3 EPS
 
$3.37
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 17 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the ground freight & logistics peer group is "buy."
Wall Street's median 12-month price target for Norfolk Southern Corp is $354.50, about 8% above its October 21 closing price of $328.09
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 24 three months ago

Reuters Recommended Reads
Oct 22 - Norfolk Southern tops profit estimates as freight demand stays strong
Oct 22 - Union Pacific's third-quarter profit rises on pricing strength
Oct 21 - CSX Q3 revenue beats estimates on higher fuel surcharges, freight volumes and pricing

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)