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Norfolk Southern's (NSC) Q1 Earnings Beat on Higher Revenues
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Norfolk Southern Corporation’s (NSC - Free Report) first-quarter 2022 earnings of $2.93 per share surpassed the Zacks Consensus Estimate of $2.91. Moreover, the bottom line improved 10.2% year over year despite network challenges.
Railway operating revenues in the quarter under review came in at $2,915 million, outperforming the Zacks Consensus Estimate of $2,819.3 million. The top line increased 10.5% year over year, with all key segments — merchandise, intermodal and coal — registering improvement in revenues. Revenue per unit rose 16% year over year. Total volumes declined 5% year over year due to network challenges.
Income from railway operations climbed 7% year over year to $1,085 million. Railway operating expenses shot up 13% on a year-over-year basis to $1,830 million, primarily due to higher expenses on fuel and purchased services. Norfolk Southern’s operating ratio (operating expenses as a percentage of revenues) deteriorated to 62.8% in the first quarter from 61.5% in the year-ago quarter, owing to higher revenues. With respect to this metric, lower the value, the better.
Norfolk Southern Corporation Price, Consensus and EPS Surprise
Coal revenues totaled $389 million, up 25% year over year. Coal volumes dipped 1%. Revenue per unit jumped 25% in the reported quarter.
Merchandise revenues climbed 4% year over year to $1,672 million. Volumes declined 3% while revenue per unit ascended 7% year over year.
Intermodal revenues augmented 19% year over year to $854 million. While segmental volumes decreased 6%, revenue per unit ascended 26%.
Liquidity, Dividends & Share Buyback
Norfolk Southern, carrying a Zacks Rank #3 (Hold), exited the first quarter with cash and cash equivalents of $1,571 million compared with $839 million at the end of 2021. Norfolk Southern had long-term debt of $13,691 million at the end of the first quarter compared with $13,287 million at December 2021-end.
During the first quarter, Norfolk Southern paid dividends worth $297 million, up 19.3% year over year. NSC repurchased and retired common stock worth $600 million in the first quarter compared with $591 million a year ago.
Sectorial Snapshot
Within the broader Transportation sector, Delta Air Lines (DAL - Free Report) and J.B. Hunt Transport Services (JBHT - Free Report) recently reported first-quarter 2022 results.
Delta, carrying a Zacks Rank #2 (Buy), incurred a loss (excluding 25 cents from non-recurring items) of $1.23 per share in the first quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of $1.28. With Omicron hampering travel plans in the early part of first-quarter 2022, the carrier incurred a loss after reaping profits in the last two quarters of 2021. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Delta’s first-quarter revenues came in at $9,348 million, which not only beat the Zacks Consensus Estimate of $9,063.5 million, but also soared in excess of 100% from the year-ago figure. The uptick in air-travel demand in the United States can be gauged from the fact that 80.5% of first-quarter 2022 passenger revenues came from domestic markets.
J.B. Hunt, carrying a Zacks Rank #2, reported first-quarter 2022 earnings of $2.29 per share, which surpassed the Zacks Consensus Estimate of $1.91. The bottom line surged 67.2% year over year on higher revenues across all segments.
J.B. Hunt’s first-quarter operating revenues of $3,488.6 million also outperformed the Zacks Consensus Estimate of $3,260.5 million. The top line jumped 33.3% year over year. Total operating revenues, excluding fuel surcharges, rose 27.4% year over year.
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Norfolk Southern's (NSC) Q1 Earnings Beat on Higher Revenues
Norfolk Southern Corporation’s (NSC - Free Report) first-quarter 2022 earnings of $2.93 per share surpassed the Zacks Consensus Estimate of $2.91. Moreover, the bottom line improved 10.2% year over year despite network challenges.
Railway operating revenues in the quarter under review came in at $2,915 million, outperforming the Zacks Consensus Estimate of $2,819.3 million. The top line increased 10.5% year over year, with all key segments — merchandise, intermodal and coal — registering improvement in revenues. Revenue per unit rose 16% year over year. Total volumes declined 5% year over year due to network challenges.
Income from railway operations climbed 7% year over year to $1,085 million. Railway operating expenses shot up 13% on a year-over-year basis to $1,830 million, primarily due to higher expenses on fuel and purchased services. Norfolk Southern’s operating ratio (operating expenses as a percentage of revenues) deteriorated to 62.8% in the first quarter from 61.5% in the year-ago quarter, owing to higher revenues. With respect to this metric, lower the value, the better.
Norfolk Southern Corporation Price, Consensus and EPS Surprise
Norfolk Southern Corporation price-consensus-eps-surprise-chart | Norfolk Southern Corporation Quote
Segmental Performance
Coal revenues totaled $389 million, up 25% year over year. Coal volumes dipped 1%. Revenue per unit jumped 25% in the reported quarter.
Merchandise revenues climbed 4% year over year to $1,672 million. Volumes declined 3% while revenue per unit ascended 7% year over year.
Intermodal revenues augmented 19% year over year to $854 million. While segmental volumes decreased 6%, revenue per unit ascended 26%.
Liquidity, Dividends & Share Buyback
Norfolk Southern, carrying a Zacks Rank #3 (Hold), exited the first quarter with cash and cash equivalents of $1,571 million compared with $839 million at the end of 2021. Norfolk Southern had long-term debt of $13,691 million at the end of the first quarter compared with $13,287 million at December 2021-end.
During the first quarter, Norfolk Southern paid dividends worth $297 million, up 19.3% year over year. NSC repurchased and retired common stock worth $600 million in the first quarter compared with $591 million a year ago.
Sectorial Snapshot
Within the broader Transportation sector, Delta Air Lines (DAL - Free Report) and J.B. Hunt Transport Services (JBHT - Free Report) recently reported first-quarter 2022 results.
Delta, carrying a Zacks Rank #2 (Buy), incurred a loss (excluding 25 cents from non-recurring items) of $1.23 per share in the first quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of $1.28. With Omicron hampering travel plans in the early part of first-quarter 2022, the carrier incurred a loss after reaping profits in the last two quarters of 2021. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Delta’s first-quarter revenues came in at $9,348 million, which not only beat the Zacks Consensus Estimate of $9,063.5 million, but also soared in excess of 100% from the year-ago figure. The uptick in air-travel demand in the United States can be gauged from the fact that 80.5% of first-quarter 2022 passenger revenues came from domestic markets.
J.B. Hunt, carrying a Zacks Rank #2, reported first-quarter 2022 earnings of $2.29 per share, which surpassed the Zacks Consensus Estimate of $1.91. The bottom line surged 67.2% year over year on higher revenues across all segments.
J.B. Hunt’s first-quarter operating revenues of $3,488.6 million also outperformed the Zacks Consensus Estimate of $3,260.5 million. The top line jumped 33.3% year over year. Total operating revenues, excluding fuel surcharges, rose 27.4% year over year.