Norfolk Southern Corporation (NSC Quick QuoteNSC - Free Report) is scheduled to report first-quarter 2024 results on Apr 24 before market open.

 

The company has a disappointing earnings surprise history, having surpassed the Zacks Consensus Estimate only once in the preceding four quarters and missing thrice, the average miss being 1.66%.

 

Let's see how things have shaped up for NSC this earnings season.

 

The Zacks Consensus Estimate for revenues is pegged at $3.04 billion, which indicates a 2.86% decline from the year-ago reported level. The top line is likely to have been weighed down by below-par performances of all three key segments — Merchandise, Intermodal and Coal. Softness in overall volumes due to headwinds like weak freight conditions, supply-chain woes and slower network velocity is likely to hurt the top line.

 

Moreover, NSC's bottom line continues to grapple with high expenses. The recent negotiations with various labor groups are also likely to have pushed labor costs higher in the first-quarter of 2024. High debt acts as another headwind. The Zacks Consensus Estimate for NSC's first-quarter 2024 earnings has been revised upward by 0.77% in the past 60 days to $2.61 per share. However, Norfolk Southern's focus on improving service, safety, and productivity despite the challenges is commendable.

 

Our proven model does not conclusively predict an earnings beat for Norfolk Southern this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here. 

 

Norfolk Southern has an Earnings ESP of -0.31% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Norfolk Southern's fourth-quarter 2024 earnings (excluding 51 cents from non-recurring items) of $2.83 per share lagged the Zacks Consensus Estimate of $2.90.

 

Railway operating revenues were $3.073 billion, which missed the Zacks Consensus Estimate of $3.109 billion. The top line decreased 5.1% year over year, with all key segments, including Merchandise, Intermodal and Coal, registering deterioration in revenues.

Here are a few other stocks from the broader Zacks Transportation sector that investors might want to consider, as our model shows that these have the right combination of elements to beat on their first-quarter 2024 

earnings.

 

American Airlines (AAL Quick QuoteAAL - Free Report) has an Earnings ESP of +6.51% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

 

AAL is scheduled to report first-quarter 2024 earnings on Apr 25. The Zacks Consensus Estimate for first-quarter earnings has declined 21.74% over the past 60 days. AAL has surpassed the Zacks Consensus Estimate in each of the preceding four quarters. The average beat is 119%.

 

Westinghouse Air Brake Technologies (WAB Quick QuoteWAB - Free Report) has an Earnings ESP of +4.98% and a Zacks Rank #3. WAB is scheduled to report first-quarter 2024 earnings on Apr 24.

 

WAB has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 6.63%.

 

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.