Freight transportation company Norfolk Southern (NYSE:NSC) will be reporting results this Thursday after market hours. Here’s what to look for.
Norfolk Southern missed analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $3.11 billion, up 2.2% year on year. It was a slower quarter for the company, with a significant miss of analysts’ sales volume estimates and a slight miss of analysts’ revenue estimates.
Is Norfolk Southern a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Norfolk Southern’s revenue to grow 1.9% year on year to $3.11 billion, in line with the 2.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.20 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Norfolk Southern has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Norfolk Southern’s peers in the transportation and logistics segment, some have already reported their Q3 results, giving us a hint as to what we can expect. CSX posted flat year-on-year revenue, meeting analysts’ expectations, and FedEx reported revenues up 3.1%, topping estimates by 2.7%. CSX traded up 1.8% following the results while FedEx was also up 2.2%.
Read our full analysis of CSX’s results here and FedEx’s results here.
Investors in the transportation and logistics segment have had steady hands going into earnings, with share prices up 1.8% on average over the last month. Norfolk Southern’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $312.53 (compared to the current share price of $289.78).
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