Norfolk Southern Q1 Results Surpasses Expectations, Records $387M Charge For Ohio Derailment Incident

Norfolk Southern Corp NSC reported first-quarter FY23 railway operating revenue growth of 7% year-over-year to $3.13 billion, beating the consensus of $3.11 billion.
Adjusted EPS was $3.32, above the consensus of $3.12.
Sales by segments: Merchandise $1.88 billion (+12% Y/Y), Intermodal $814 million (-5% Y/Y), and Coal $440 million (+13% Y/Y).
The company stated that the results include an initial $387 million charge associated with the incident in Eastern Ohio and do not reflect any amounts potentially recoverable under the company's insurance policies.
Railway operating expenses increased by 32% Y/Y to $2.42 billion.
Income from railway operations declined 34% to $711 million from $1.09 billion a year ago. Adjusting for the Eastern Ohio Incident, income from railway operations was $1.1 billion (+1% Y/Y).
Net cash provided by operating activities for Q1 totaled $1.17 billion versus $994 million in 1Q22.
Norfolk Southern held $552 million in cash and cash equivalents.
The company repurchased and retired 0.6 million shares in the first three months of 2023 for $163 million.
Norfolk Southern's quarterly dividend of $1.35 per share is payable on May 20, 2023, to shareholders of record on May 5, 2023.
Price Action: NSC shares are trading lower by 0.44% at $206.01 on the last check Wednesday.

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