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Norfolk Southern Corporation’s (NSC - Free Report) third-quarter 2024 earnings (excluding $1.6 from non-recurring items) of $3.25 per share beat the Zacks Consensus Estimate of $3.10 and increased 22.6% year over year, owing to lower costs.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Railway operating revenues were $3.05 billion in the quarter under review, lagging the Zacks Consensus Estimate of $3.09 billion. The top line increased 2.7% year over year, with the Merchandise and Intermodal segments registering improvement in revenues.
Overall volumes increased 7%. Total revenue per unit dipped 4% year over year. Income from railway operations more than doubled to to $1.6 billion.
Railway operating expenses declined 34% on a year-over-year basis to $1.45 billion, primarily due to a double-digit decrease in expenses on fuel.
Norfolk Southern’s operating ratio (operating expenses as a percentage of revenues) on an adjusted basis improved to 63.4% in the third quarter from 69.1% in the year-ago quarter, mainly owing to lower costs. A lower value of the metric is desirable.
Norfolk Southern Corporation Price, Consensus and EPS Surprise
Merchandise revenues improved 3% year over year to $1.86 billion. Actual segmental revenues were lower than our estimate of $1.9 billion. Volumes, as well as revenue per unit increased 2% year over year.
Revenues from Intermodal improved 4% year over year to $763 million. Actual segmental revenues were lower than our projection of $765.1 million. While segmental volumes increased 9%, revenue per unit tumbled 5%.
Coal revenues came in at $427 million, down 2% year over year. Actual segmental revenues surpassed our projection of $423.1 million. Coal volumes improved 11% year over year. Revenue per unit declined 11% in the reported quarter.
Liquidity & Buyback
Norfolk Southern exited the third quarter with cash and cash equivalents of $975 million compared with $1.56 billion at the end of 2023. NSC had a long-term debt of $16.6 billion at the third-quarter end compared with $17.2 billion at the end of 2023.
The company did not repurchase any shares under its stock repurchase program in the third quarter of 2024.
Delta Air Lines (DAL - Free Report) reported third-quarter 2024 earnings (excluding 47 cents from non-recurring items) of $1.50 per share, which fell short of the Zacks Consensus Estimate of $1.56. Earnings decreased 26.11% on a year-over-year basis due to high labor costs.
Revenues of $15.68 billion surpassed the Zacks Consensus Estimate of $15.37 billion and increased 1.2% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.59 billion, flat year over year. This was inclusive of the $380 million impact from the outage caused by CrowdStrike (CRWD - Free Report) .
J.B. Hunt Transport Services’ (JBHT - Free Report) third-quarter 2024 earnings of $1.49 per share outpaced the Zacks Consensus Estimate of $1.42 but declined 17.2% year over year.
Total operating revenues of $3.07 billion surpassed the Zacks Consensus Estimate of $3.04 billion but fell 3% year over year. Operating income for the September quarter decreased 7% year over year to $224.1 million.
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Norfolk Southern's Q3 Earnings Surpass Estimates, Increase Y/Y
Norfolk Southern Corporation’s (NSC - Free Report) third-quarter 2024 earnings (excluding $1.6 from non-recurring items) of $3.25 per share beat the Zacks Consensus Estimate of $3.10 and increased 22.6% year over year, owing to lower costs.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Railway operating revenues were $3.05 billion in the quarter under review, lagging the Zacks Consensus Estimate of $3.09 billion. The top line increased 2.7% year over year, with the Merchandise and Intermodal segments registering improvement in revenues.
Overall volumes increased 7%. Total revenue per unit dipped 4% year over year. Income from railway operations more than doubled to to $1.6 billion.
Railway operating expenses declined 34% on a year-over-year basis to $1.45 billion, primarily due to a double-digit decrease in expenses on fuel.
Norfolk Southern’s operating ratio (operating expenses as a percentage of revenues) on an adjusted basis improved to 63.4% in the third quarter from 69.1% in the year-ago quarter, mainly owing to lower costs. A lower value of the metric is desirable.
Norfolk Southern Corporation Price, Consensus and EPS Surprise
Norfolk Southern Corporation price-consensus-eps-surprise-chart | Norfolk Southern Corporation Quote
Segmental Performance of NSC
Merchandise revenues improved 3% year over year to $1.86 billion. Actual segmental revenues were lower than our estimate of $1.9 billion. Volumes, as well as revenue per unit increased 2% year over year.
Revenues from Intermodal improved 4% year over year to $763 million. Actual segmental revenues were lower than our projection of $765.1 million. While segmental volumes increased 9%, revenue per unit tumbled 5%.
Coal revenues came in at $427 million, down 2% year over year. Actual segmental revenues surpassed our projection of $423.1 million. Coal volumes improved 11% year over year. Revenue per unit declined 11% in the reported quarter.
Liquidity & Buyback
Norfolk Southern exited the third quarter with cash and cash equivalents of $975 million compared with $1.56 billion at the end of 2023. NSC had a long-term debt of $16.6 billion at the third-quarter end compared with $17.2 billion at the end of 2023.
The company did not repurchase any shares under its stock repurchase program in the third quarter of 2024.
Zacks Rank
Currently, NSC carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported third-quarter 2024 earnings (excluding 47 cents from non-recurring items) of $1.50 per share, which fell short of the Zacks Consensus Estimate of $1.56. Earnings decreased 26.11% on a year-over-year basis due to high labor costs.
Revenues of $15.68 billion surpassed the Zacks Consensus Estimate of $15.37 billion and increased 1.2% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.59 billion, flat year over year. This was inclusive of the $380 million impact from the outage caused by CrowdStrike (CRWD - Free Report) .
J.B. Hunt Transport Services’ (JBHT - Free Report) third-quarter 2024 earnings of $1.49 per share outpaced the Zacks Consensus Estimate of $1.42 but declined 17.2% year over year.
Total operating revenues of $3.07 billion surpassed the Zacks Consensus Estimate of $3.04 billion but fell 3% year over year. Operating income for the September quarter decreased 7% year over year to $224.1 million.