Examining the Future: Norfolk Southern's Earnings Outlook

Norfolk Southern NSC is gearing up to announce its quarterly earnings on Tuesday, 2025-07-29. 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 $3.29.

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.

Earnings Track Record

In the previous earnings release, the company missed EPS by $0.00, leading to a 2.13% increase in the share price the following trading session.

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

Performance of Norfolk Southern Shares

Shares of Norfolk Southern were trading at $282.38 as of July 25. Over the last 52-week period, shares are up 13.93%. 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.

Norfolk Southern has received a total of 14 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $288.57, the consensus suggests a potential 2.19% upside.

Comparing Ratings Among Industry Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of CSX, Old Dominion Freight Line and XPO, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for CSX, with an average 1-year price target of $37.4, suggesting a potential 86.76% downside.
• Analysts currently favor an Neutral trajectory for Old Dominion Freight Line, with an average 1-year price target of $172.0, suggesting a potential 39.09% downside.
• Analysts currently favor an Outperform trajectory for XPO, with an average 1-year price target of $135.32, suggesting a potential 52.08% downside.

Snapshot: Peer Analysis

Within the peer analysis summary, vital metrics for CSX, Old Dominion Freight Line and XPO are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Norfolk Southern ranks in the middle for consensus rating. It is at the bottom for revenue growth. It is at the top for gross profit. It is at the bottom for return on equity.

Unveiling the Story Behind 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: Financial Performance Dissected

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Decline in Revenue: Over the 3 months period, Norfolk Southern faced challenges, resulting in a decline of approximately -0.37% in revenue growth as of 31 March, 2025. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Norfolk Southern's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 25.03%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Norfolk Southern's ROE stands out, surpassing industry averages. With an impressive ROE of 5.2%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.71%, the company showcases effective utilization of assets.

Debt Management: Norfolk Southern's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.19, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

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.