These Analysts Revise Their Forecasts On Norfolk Southern Following Q4 Results

Norfolk Southern Corp NSC reported weaker-than-expected fourth-quarter earnings on Friday.

Norfolk Southern reported a fourth-quarter fiscal 2023 railway operating revenue decline of 5% year-over-year to $3.073 billion, versus the consensus of $3.08 billion. Adjusted EPS was $2.83 (-17% Y/Y), below the consensus of $2.87.

For 2024, Norfolk Southern expects revenue growth of ~3% YoY and CapEx flat with 2023 ~$2.3 billion.

Norfolk Southern President and Chief Executive Officer Alan H. Shaw commented, “Norfolk Southern enters 2024 with positive momentum and a focus on driving further productivity gains and operational discipline through aggressive cost management.”

Norfolk Southern shares fell 1.5% to close at $234.26 on Friday.

These analysts made changes to their price targets on Norfolk Southern after the company reported quarterly results.

• Morgan Stanley cut the price target on Norfolk Southern from $185 to $175. Morgan Stanley analyst Ravi Shanker downgraded the stock from Equal-Weight to Underweight.
• Stifel slashed Norfolk Southern price target from $250 to $233. Stifel analyst Benjamin Nolan downgraded the stock from Buy to Hold.
• TD Cowen boosted the price target on Norfolk Southern from $233 to $236. TD Cowen analyst Jason Seidl downgraded the stock from Outperform to Market Perform.

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