We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Norfolk Southern (NSC) Q3 Earnings & Revenues Beat, Up Y/Y
Read MoreHide Full Article
Norfolk Southern Corporation (NSC - Free Report) reported third-quarter 2018 earnings of $2.52 per share, surpassing the Zacks Consensus Estimate of $2.44. The bottom line also improved 44% on a year-over-year basis. Results were aided by a low effective tax rate among other factors.
Railway operating revenues in the quarter under review grossed $2,947 million, above the Zacks Consensus Estimate of $2,904.3 million. The top line also rose 10.4% on a year-over-year basis. Overall, volumes expanded 5% on the back of growth across all three segments.
Income from railway operations rose 14% year over year to $1 billion. Operating expenses increased 9% year over year to $1.9 billion. Railway operating expenses rose due to higher fuel prices and volume-related expenses as well as costs associated with overall lower network velocity.
Norfolk Southern’s operating ratio (operating expenses as a percentage of revenues) in the third quarter of 2018 came in at 65.4% compared with 66.5% in the third quarter of 2017. The strong earnings report pleased investors. Consequently, the stock gained in early trading.
Norfolk Southern Corporation Price, Consensus and EPS Surprise
On a year-over-year basis, coal revenues increased 3% to $464 million. Coal volumes declined 4%.
Merchandise revenues gained 9% year over year to $1,737 million. Merchandise volumes improved 3%.
Intermodal revenues rose 20% year over year to $746 million. Intermodal volumes improved 8%.
Liquidity
This Zacks Rank #2 (Buy) company exited the third quarter with cash and cash equivalents of $729 million compared with $690 million at the end of 2017. The company had long-term debt of $10,635 million compared with $9,136 million as of Dec 31, 2017. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the broader Transportation Sector are awaiting third-quarter 2018 earnings reports from key players, namely Southwest Airlines Co. (LUV - Free Report) , Union Pacific Corporation (UNP - Free Report) and Alaska Air Group, Inc. (ALK - Free Report) . All the stocks are scheduled to release results on Oct 25.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Norfolk Southern (NSC) Q3 Earnings & Revenues Beat, Up Y/Y
Norfolk Southern Corporation (NSC - Free Report) reported third-quarter 2018 earnings of $2.52 per share, surpassing the Zacks Consensus Estimate of $2.44. The bottom line also improved 44% on a year-over-year basis. Results were aided by a low effective tax rate among other factors.
Railway operating revenues in the quarter under review grossed $2,947 million, above the Zacks Consensus Estimate of $2,904.3 million. The top line also rose 10.4% on a year-over-year basis. Overall, volumes expanded 5% on the back of growth across all three segments.
Income from railway operations rose 14% year over year to $1 billion. Operating expenses increased 9% year over year to $1.9 billion. Railway operating expenses rose due to higher fuel prices and volume-related expenses as well as costs associated with overall lower network velocity.
Norfolk Southern’s operating ratio (operating expenses as a percentage of revenues) in the third quarter of 2018 came in at 65.4% compared with 66.5% in the third quarter of 2017. The strong earnings report pleased investors. Consequently, the stock gained in early trading.
Norfolk Southern Corporation Price, Consensus and EPS Surprise
Norfolk Southern Corporation Price, Consensus and EPS Surprise | Norfolk Southern Corporation Quote
Segmental Revenues
On a year-over-year basis, coal revenues increased 3% to $464 million. Coal volumes declined 4%.
Merchandise revenues gained 9% year over year to $1,737 million. Merchandise volumes improved 3%.
Intermodal revenues rose 20% year over year to $746 million. Intermodal volumes improved 8%.
Liquidity
This Zacks Rank #2 (Buy) company exited the third quarter with cash and cash equivalents of $729 million compared with $690 million at the end of 2017. The company had long-term debt of $10,635 million compared with $9,136 million as of Dec 31, 2017. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the broader Transportation Sector are awaiting third-quarter 2018 earnings reports from key players, namely Southwest Airlines Co. (LUV - Free Report) , Union Pacific Corporation (UNP - Free Report) and Alaska Air Group, Inc. (ALK - Free Report) . All the stocks are scheduled to release results on Oct 25.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>