Freight transportation company Norfolk Southern (NYSE: NSC) will be announcing earnings results this Tuesday morning. Here’s what to expect.
Norfolk Southern met analysts’ revenue expectations last quarter, reporting revenues of $2.99 billion, flat year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ EBITDA estimates.
Is Norfolk Southern a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Norfolk Southern’s revenue to grow 3% year on year to $3.14 billion, in line with the 2.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.30 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 16 downward revisions over the last 30 days (we track 18 analysts). Norfolk Southern has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Norfolk Southern’s peers in the transportation and logistics segment, some have already reported their Q2 results, giving us a hint as to what we can expect. CSX’s revenues decreased 3.4% year on year, meeting analysts’ expectations, and Union Pacific reported revenues up 2.4%, in line with consensus estimates. CSX’s stock price was unchanged after the resultswhile Union Pacific was down 2.8%.
Read our full analysis of CSX’s results here and Union Pacific’s results here.
There has been positive sentiment among investors in the transportation and logistics segment, with share prices up 6.8% on average over the last month. Norfolk Southern is up 11.3% during the same time and is heading into earnings with an average analyst price target of $283.22 (compared to the current share price of $285.02).
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