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The company has a disappointing earnings surprise history, having missed the Zacks Consensus Estimate in each of the trailing four quarters. The average miss is 3.88%.
Norfolk Southern Corporation Price and EPS Surprise
Let’s see how things have shaped up for NSC this earnings season.
The Zacks Consensus Estimate for Norfolk Southern’s soon-to-be reported quarter’s earnings has been revised downward by 2.71% in the past 60 days to $2.87 per share.
The Zacks Consensus Estimate for revenues is pegged at $3.05 billion, which indicates a 2.43% rise from the year-ago reported level. The top line is likely to have been affected by the performances of all three key segments — Merchandise, Intermodal and Coal.
Weak freight conditions are likely to have hurt Norfolk Southern’s top line in the to-be-reported quarter. Further, inflation-related woes are likely to have brought about a reduction in consumer demand for goods, in turn affecting freight volumes hauled by rail.
Moreover, the northward movement in operating expenses is likely to have adversely impacted NSC’sbottom line in the second quarter of 2024. This surge in operating expenses is primarily driven by the increase in labor costs.
The recent negotiations with various labor groups are likely to have pushed labor costs higher in the second quarter of 2024. We expect expenses on compensation and benefits to increase 4.1% in the second quarter of 2024 from the second-quarter 2023 actuals.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Norfolk Southern this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.
Norfolk Southern has an Earnings ESP of -1.80% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Highlights of Q1
Norfolk Southern’s first-quarter 2024 earnings of $2.49 per share fell short of the Zacks Consensus Estimate of $2.58 and declined 25% year over year. Results were hurt by high costs.
Railway operating revenues were $3 billion in the quarter under review, which lagged the Zacks Consensus Estimate of $3.03 billion. The top line decreased 4% year over year, with all key segments, including Merchandise, Intermodal and Coal, registering deterioration in revenues.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors might want to consider as our model shows that these have the right combination of elements to beat second-quarter 2024 earnings.
Allegiant (ALGT - Free Report) has an Earnings ESP of +4.11% and a Zacks Rank #3.The company is scheduled to report second-quarter 2024 earnings on Jul 31. Upbeat air travel demand is likely to have aided the company’s performance.
ALGT surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once. The average beat is 29.3%.
KEX has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 10.3%.
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What's in Store for Norfolk Southern (NSC) in Q2 Earnings?
Norfolk Southern Corporation (NSC - Free Report) is scheduled to report second-quarter 2024 results on Jul 25 after market close.
The company has a disappointing earnings surprise history, having missed the Zacks Consensus Estimate in each of the trailing four quarters. The average miss is 3.88%.
Norfolk Southern Corporation Price and EPS Surprise
Norfolk Southern Corporation price-eps-surprise | Norfolk Southern Corporation Quote
Let’s see how things have shaped up for NSC this earnings season.
The Zacks Consensus Estimate for Norfolk Southern’s soon-to-be reported quarter’s earnings has been revised downward by 2.71% in the past 60 days to $2.87 per share.
The Zacks Consensus Estimate for revenues is pegged at $3.05 billion, which indicates a 2.43% rise from the year-ago reported level. The top line is likely to have been affected by the performances of all three key segments — Merchandise, Intermodal and Coal.
Weak freight conditions are likely to have hurt Norfolk Southern’s top line in the to-be-reported quarter. Further, inflation-related woes are likely to have brought about a reduction in consumer demand for goods, in turn affecting freight volumes hauled by rail.
Moreover, the northward movement in operating expenses is likely to have adversely impacted NSC’sbottom line in the second quarter of 2024. This surge in operating expenses is primarily driven by the increase in labor costs.
The recent negotiations with various labor groups are likely to have pushed labor costs higher in the second quarter of 2024. We expect expenses on compensation and benefits to increase 4.1% in the second quarter of 2024 from the second-quarter 2023 actuals.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Norfolk Southern this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.
Norfolk Southern has an Earnings ESP of -1.80% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Highlights of Q1
Norfolk Southern’s first-quarter 2024 earnings of $2.49 per share fell short of the Zacks Consensus Estimate of $2.58 and declined 25% year over year. Results were hurt by high costs.
Railway operating revenues were $3 billion in the quarter under review, which lagged the Zacks Consensus Estimate of $3.03 billion. The top line decreased 4% year over year, with all key segments, including Merchandise, Intermodal and Coal, registering deterioration in revenues.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors might want to consider as our model shows that these have the right combination of elements to beat second-quarter 2024 earnings.
Allegiant (ALGT - Free Report) has an Earnings ESP of +4.11% and a Zacks Rank #3.The company is scheduled to report second-quarter 2024 earnings on Jul 31. Upbeat air travel demand is likely to have aided the company’s performance.
ALGT surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once. The average beat is 29.3%.
Kirby (KEX - Free Report) has an Earnings ESP of +7.58% and a Zacks Rank #1. KEX is scheduled to report second-quarter 2024 earnings on Aug 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
KEX has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 10.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.