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Atlanta, Georgia-based Norfolk Southern Corporation (NSC) primarily provides rail transportation of raw materials, intermediate products, and finished goods. Valued at a market cap of $54.7 billion, the company operates one of the largest freight rail networks in North America and transports industrial products, including automotive, agriculture, coal, and intermodal goods, across 22 states and the District of Columbia. It is scheduled to announce its fiscal Q1 earnings for 2025 before the market opens on Wednesday, Apr. 23.
Prior to this event, analysts project this transportation company to report a profit of $2.83 per share, up 13.7% from $2.49 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the last four quarters, while missing on another occasion. Its earnings of $3.04 per share in the previous quarter outpaced the consensus estimates by nearly 3.1%.
For the full year, analysts expect NSC to report EPS of $12.96, up 9.4% from $11.85 in fiscal 2024. Its EPS is expected to further grow 13% year over year to $14.65 in fiscal 2026.
Shares of NSC have declined 12.4% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 4.7% rise, and the Industrial Select Sector SPDR Fund’s (XLI) 1.3% uptick over the same time frame.
On Jan. 29, shares of NSC closed up nearly 1.8% after its mixed Q4 earnings release. The company’s adjusted earnings advanced 7.4% year-over-year to $3.04 per share, surpassing Wall Street’s expectations by 3.1%. A notable 16.4% decline in railway operating expenses supported its robust bottom-line growth. Adding to the uptick, its income from railway operations came in at $1.1 billion, up 40% from the year-ago quarter. However, due to lower merchandise and intermodal revenues, its total sales declined 1.6% annually to $3 billion and marginally fell short of the forecasted figure.
Wall Street analysts are moderately optimistic about NSC’s stock, with a "Moderate Buy" rating overall. Among 26 analysts covering the stock, 14 recommend "Strong Buy," one suggests a “Moderate Buy,” 10 advise “Hold,” and one indicates a “Strong Sell” rating. The average price target for NSC is $272.12, which indicates a 22.6% potential upside from the current levels.
