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Norfolk Southern (NSC) Beats on Q2 Earnings, Revenues Miss
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Leading U.S. railroad operator Norfolk Southern Corp. (NSC - Free Report) reported second-quarter 2017 earnings of $1.71 per share that beat the Zacks Consensus Estimate of $1.64.
The bottom line also rallied 25.74% year over year, aided by a rise in income from railway operations and a record operating ratio.
Railway operating revenues in second-quarter 2017 came in at $2,637 million, marginally below the Zacks Consensus Estimate of $2,641.7 million. Revenue however improved 7.46% on a year-over-year basis. Volume growth drove the top line.
Income from railway operations climbed 15% year over year to $888 million. Operating expenses increased 4% year over year to $1,749 million. Operating ratio (defined as operating expenses as a percentage of revenues) in the reported quarter was 66.3% compared with 68.6% a year ago. The company raised its share repurchase guidance by 25% to $1 billion for 2017.
The earnings report however failed to find favor with investors. Consequently, the stock lost value in early trading.
Segments
On a year-over-year basis, coal revenues surged 31.8% to $447 million.
Merchandise revenues inched up 1.3% year over year to $1,597 million.
Intermodal revenues rose 10.2% year over year to $593 million.
Norfolk Southern Corporation Price, Consensus and EPS Surprise
Norfolk Southern exited the second quarter with cash and cash equivalents of $642 million compared with $956 million at the end of 2016. The company had long-term debt of $9,273 million, compared with $9,562 million at the end of 2016.
Upcoming Releases
Investors interested in the broader transportation space are keenly waiting for second-quarter earnings reports from key players like American Airlines Group, Inc. (AAL - Free Report) , Copa Holdings, S.A. (CPA - Free Report) and Air Lease Corp. (AL - Free Report) . While American Airlines is scheduled to report second-quarter results on Jul 28, Copa Holdings and Air Lease will report the same on Aug 9 and Aug 3, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaries," but that should still leave plenty of money for regular investors who make the right trades early.
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Norfolk Southern (NSC) Beats on Q2 Earnings, Revenues Miss
Leading U.S. railroad operator Norfolk Southern Corp. (NSC - Free Report) reported second-quarter 2017 earnings of $1.71 per share that beat the Zacks Consensus Estimate of $1.64.
The bottom line also rallied 25.74% year over year, aided by a rise in income from railway operations and a record operating ratio.
Railway operating revenues in second-quarter 2017 came in at $2,637 million, marginally below the Zacks Consensus Estimate of $2,641.7 million. Revenue however improved 7.46% on a year-over-year basis. Volume growth drove the top line.
Income from railway operations climbed 15% year over year to $888 million. Operating expenses increased 4% year over year to $1,749 million. Operating ratio (defined as operating expenses as a percentage of revenues) in the reported quarter was 66.3% compared with 68.6% a year ago. The company raised its share repurchase guidance by 25% to $1 billion for 2017.
The earnings report however failed to find favor with investors. Consequently, the stock lost value in early trading.
Segments
On a year-over-year basis, coal revenues surged 31.8% to $447 million.
Merchandise revenues inched up 1.3% year over year to $1,597 million.
Intermodal revenues rose 10.2% year over year to $593 million.
Norfolk Southern Corporation Price, Consensus and EPS Surprise
Norfolk Souther Corporation Price, Consensus and EPS Surprise | Norfolk Souther Corporation Quote
Liquidity
Norfolk Southern exited the second quarter with cash and cash equivalents of $642 million compared with $956 million at the end of 2016. The company had long-term debt of $9,273 million, compared with $9,562 million at the end of 2016.
Upcoming Releases
Investors interested in the broader transportation space are keenly waiting for second-quarter earnings reports from key players like American Airlines Group, Inc. (AAL - Free Report) , Copa Holdings, S.A. (CPA - Free Report) and Air Lease Corp. (AL - Free Report) . While American Airlines is scheduled to report second-quarter results on Jul 28, Copa Holdings and Air Lease will report the same on Aug 9 and Aug 3, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaries," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>