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Norfolk Southern (NSC) Reports Q2 Earnings: What Key Metrics Have to Say

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For the quarter ended June 2023, Norfolk Southern (NSC - Free Report) reported revenue of $2.98 billion, down 8.3% over the same period last year. EPS came in at $2.95, compared to $3.45 in the year-ago quarter.

The reported revenue represents a surprise of -2.99% over the Zacks Consensus Estimate of $3.07 billion. With the consensus EPS estimate being $3.15, the EPS surprise was -6.35%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Norfolk Southern performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Railway Operating Ratio: 80.7% versus the five-analyst average estimate of 63.83%.
  • Coal Tonnage - Export: 7.7 thousand versus 7.21 thousand estimated by three analysts on average.
  • Coal Tonnage - Domestic metallurgical: 3.06 thousand versus the three-analyst average estimate of 2.39 thousand.
  • Coal Tonnage - Industrial: 0.88 thousand versus the three-analyst average estimate of 1.03 thousand.
  • Average price (dollars) per gallon of locomotive diesel fuel: $2.62 versus the three-analyst average estimate of $2.88.
  • Railway operating revenues- Merchandise- Agriculture, Forest and Consumer Products: $627 million versus the four-analyst average estimate of $628.83 million. The reported number represents a year-over-year change of +0.5%.
  • Railway operating revenues- Intermodal: $745 million versus the four-analyst average estimate of $840 million. The reported number represents a year-over-year change of -23.4%.
  • Railway operating revenues- Coal: $409 million compared to the $397.79 million average estimate based on four analysts. The reported number represents a change of -3.8% year over year.
  • Railway operating revenues- Merchandise- Automotive: $281 million compared to the $273.91 million average estimate based on four analysts. The reported number represents a change of +9.3% year over year.
  • Railway operating revenues- Merchandise- Chemicals: $503 million versus $535 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -8.9% change.
  • Railway operating revenues- Merchandise- Metals and construction: $415 million compared to the $420.40 million average estimate based on four analysts. The reported number represents a change of -1.2% year over year.
  • Railway operating revenues- Merchandise: $1.83 billion versus $1.85 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -1.5% change.
View all Key Company Metrics for Norfolk Southern here>>>

Shares of Norfolk Southern have returned +6.2% over the past month versus the Zacks S&P 500 composite's +5.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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