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) to Benefit From CSR Buyout: Here's How
Read MoreHide Full Article
Norfolk Southern Corporation's (NSC - Free Report) operating subsidiary, Norfolk Southern Railway Company, has inked a deal to purchase all the assets of Cincinnati Southern Railway (CSR) for nearly $1.62 billion in cash. NSC plans to fund the deal through a combination of internal and external sources. Subject to certain conditions, which include approval by the voters of Cincinnati and the U.S. Surface Transportation Board, the deal is anticipated to be completed in the first half of 2024.
CSR is almost a 337-mile railroad, which runs from Cincinnati, OH to Chattanooga, TN. Currently, CSR is owned by the City of Cincinnati and operated by Cincinnati, New Orleans and Texas Pacific Railway Company, a wholly owned subsidiary of Norfolk Southern Railway (per a lease agreement which is expiring in 2026).
Alan H. Shaw, president and chief executive officer at Norfolk Southern, stated, "This agreement sets the framework for Norfolk Southern to own a core line in our network in perpetuity, allowing us to advance our strategic objectives of improving service, enhancing productivity, and creating an even stronger platform for accelerated growth, all while eliminating uncertainty around future control of the line and lease costs."
Considering that CSR is a link between the Midwest and the Southeast, the latest deal is expected to further strengthen Norfolk Southern’s network, which already serves more than 50% of the U.S. population.
Zacks Rank & Stocks to Consider
Norfolk Southern currently carries a Zacks Rank #3 (Hold).
ATSG has an expected earnings growth rate of 34.34% for the current year. ATSG delivered a trailing four-quarter earnings surprise of 17.78%, on average.
The Zacks Consensus Estimate for ATSG’s current-year earnings has improved 5.2% over the past 90 days.
Ryder has an expected earnings growth rate of 67.12% for the current year. R delivered a trailing four-quarter earnings surprise of 30.13%, on average.
The Zacks Consensus Estimate for R’s current-year earnings has improved 6.9% over the past 90 days. Shares of R have gained 7.2% over the past year.
Teekay Tankers has an expected earnings growth rate of 214.91% for the current year. TNK delivered a trailing four-quarter earnings surprise of 42.23%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved 95% over the past 90 days. Shares of TNK have soared 182.5% over the past year.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Norfolk Southern (NSC) to Benefit From CSR Buyout: Here's How
Norfolk Southern Corporation's (NSC - Free Report) operating subsidiary, Norfolk Southern Railway Company, has inked a deal to purchase all the assets of Cincinnati Southern Railway (CSR) for nearly $1.62 billion in cash. NSC plans to fund the deal through a combination of internal and external sources. Subject to certain conditions, which include approval by the voters of Cincinnati and the U.S. Surface Transportation Board, the deal is anticipated to be completed in the first half of 2024.
CSR is almost a 337-mile railroad, which runs from Cincinnati, OH to Chattanooga, TN. Currently, CSR is owned by the City of Cincinnati and operated by Cincinnati, New Orleans and Texas Pacific Railway Company, a wholly owned subsidiary of Norfolk Southern Railway (per a lease agreement which is expiring in 2026).
Alan H. Shaw, president and chief executive officer at Norfolk Southern, stated, "This agreement sets the framework for Norfolk Southern to own a core line in our network in perpetuity, allowing us to advance our strategic objectives of improving service, enhancing productivity, and creating an even stronger platform for accelerated growth, all while eliminating uncertainty around future control of the line and lease costs."
Considering that CSR is a link between the Midwest and the Southeast, the latest deal is expected to further strengthen Norfolk Southern’s network, which already serves more than 50% of the U.S. population.
Zacks Rank & Stocks to Consider
Norfolk Southern currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader Zacks Transportation sector are Air Transport Services Group (ATSG - Free Report) , Ryder Systems (R - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) ), each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ATSG has an expected earnings growth rate of 34.34% for the current year. ATSG delivered a trailing four-quarter earnings surprise of 17.78%, on average.
The Zacks Consensus Estimate for ATSG’s current-year earnings has improved 5.2% over the past 90 days.
Ryder has an expected earnings growth rate of 67.12% for the current year. R delivered a trailing four-quarter earnings surprise of 30.13%, on average.
The Zacks Consensus Estimate for R’s current-year earnings has improved 6.9% over the past 90 days. Shares of R have gained 7.2% over the past year.
Teekay Tankers has an expected earnings growth rate of 214.91% for the current year. TNK delivered a trailing four-quarter earnings surprise of 42.23%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved 95% over the past 90 days. Shares of TNK have soared 182.5% over the past year.