A Look at Norfolk Southern's Upcoming Earnings Report

Norfolk Southern NSC is gearing up to announce its quarterly earnings on Tuesday, 2024-10-22. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Norfolk Southern will report an earnings per share (EPS) of $3.09.

Anticipation surrounds Norfolk Southern's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Past Earnings Performance

In the previous earnings release, the company beat EPS by $0.20, leading to a 10.91% increase in the share price the following trading session.

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

Market Performance of Norfolk Southern's Stock

Shares of Norfolk Southern were trading at $252.37 as of October 18. Over the last 52-week period, shares are up 27.12%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Take on Norfolk Southern

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Norfolk Southern.

The consensus rating for Norfolk Southern is Neutral, derived from 13 analyst ratings. An average one-year price target of $268.38 implies a potential 6.34% upside.

Comparing Ratings Among Industry Peers

This comparison focuses on the analyst ratings and average 1-year price targets of CSX, Old Dominion Freight Line and JB Hunt Transport Servs, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• As per analysts' assessments, CSX is favoring an Outperform trajectory, with an average 1-year price target of $39.06, suggesting a potential 84.52% downside.
• The consensus among analysts is an Neutral trajectory for Old Dominion Freight Line, with an average 1-year price target of $204.47, indicating a potential 18.98% downside.
• JB Hunt Transport Servs is maintaining an Neutral status according to analysts, with an average 1-year price target of $182.12, indicating a potential 27.84% downside.

Peer Metrics Summary

The peer analysis summary offers a detailed examination of key metrics for CSX, Old Dominion Freight Line and JB Hunt Transport Servs, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Norfolk Southern ranks in the middle for revenue growth among its peers. It has the lowest gross profit and return on equity compared to others.

Get to Know Norfolk Southern Better

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 automobile, agriculture, metal, chemical, and forest products.

Norfolk Southern's Financial Performance

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Positive Revenue Trend: Examining Norfolk Southern's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 2.15% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Norfolk Southern's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 24.18% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Norfolk Southern's ROE stands out, surpassing industry averages. With an impressive ROE of 5.77%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Norfolk Southern's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.74% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a below-average debt-to-equity ratio of 1.36, Norfolk Southern adopts a prudent financial strategy, indicating a balanced approach to debt management.

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.