Exploring Norfolk Southern's Earnings Expectations

Norfolk Southern NSC is preparing to release its quarterly earnings on Wednesday, 2025-04-23. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Norfolk Southern to report an earnings per share (EPS) of $2.78.

The market awaits Norfolk Southern's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Performance in Previous Earnings

During the last quarter, the company reported an EPS beat by $0.10, leading to a 0.18% increase in the share price on the subsequent day.

Here's a look at Norfolk Southern's past performance and the resulting price change:

Norfolk Southern Share Price Analysis

Shares of Norfolk Southern were trading at $218.94 as of April 21. Over the last 52-week period, shares are down 7.0%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Insights Shared by Analysts on Norfolk Southern

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Norfolk Southern.

The consensus rating for Norfolk Southern is Buy, based on 14 analyst ratings. With an average one-year price target of $272.86, there's a potential 24.63% upside.

Analyzing Analyst Ratings Among Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of CSX, Old Dominion Freight Line and Grab Holdings, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for CSX, with an average 1-year price target of $34.57, suggesting a potential 84.21% downside.
• Analysts currently favor an Neutral trajectory for Old Dominion Freight Line, with an average 1-year price target of $187.88, suggesting a potential 14.19% downside.
• Analysts currently favor an Outperform trajectory for Grab Holdings, with an average 1-year price target of $5.77, suggesting a potential 97.36% downside.

Key Findings: Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for CSX, Old Dominion Freight Line and Grab Holdings, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Norfolk Southern ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, it is at the top.

About Norfolk Southern

Class-I railroad Norfolk Southern operates in the Eastern United States. On more than 20,000 miles of track, the rail hauls shipments of coal, intermodal traffic, and a diverse mix of automotive, agriculture, metal, chemical, and forest products.

Norfolk Southern: A Financial Overview

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Norfolk Southern's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -1.59%. This indicates a decrease in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Norfolk Southern's net margin excels beyond industry benchmarks, reaching 24.21%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Norfolk Southern's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.21% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Norfolk Southern's ROA stands out, surpassing industry averages. With an impressive ROA of 1.68%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Norfolk Southern's debt-to-equity ratio is below the industry average. With a ratio of 1.22, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Norfolk Southern visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.