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Norfolk Southern (NSC) Surpasses on Q1 Earnings & Revenues
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Norfolk Southern Corporation (NSC - Free Report) reported first-quarter 2018 earnings of $1.93 per share, surpassing the Zacks Consensus Estimate of $1.77. The bottom line also improved 30% on a year-over-year basis. Results were aided by an impressive performance at the.
Railway operating revenues in the quarter under review came in at $2,717 million, above the Zacks Consensus Estimate of $2,681.8 million. The top line also rose 5.5% on a year-over-year basis. Overall, volumes expanded 3% on the back of a solid performance at the intermodal segment.
Income from railway operations climbed 10% year over year to $835 million. Operating expenses increased 4% year over year to $1.9 billion. Railway operating expenses rose due to higher fuel prices as well as costs related to overall lower network velocity.
Norfolk Southern’s operating ratio (operating expenses as a percentage of revenues) in the first quarter of 2018 came in at 69.3% compared with 70% in the first quarter of 2017.
Norfolk Southern Corporation Price, Consensus and EPS Surprise
On a year-over-year basis, coal revenues increased 3.3% to $434 million.
Merchandise revenues inched up 1.3% year over year to $1,605 million.
Intermodal revenues rose 18.7% year over year to $678 million.
Liquidity
This Zacks Rank #3 (Hold) exited the first quarter with cash and cash equivalents of $1,072 million compared with $690 million at the end of 2017. The company had long-term debt of $9,637 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.
With the company having delivered a sound financial performance in the first quarter, it keeps its optimism alive on its prospects in 2018. It has also increased its expected annual share repurchases to $1.5 billion.
Dividend
Norfolk Southern's board of directors approved a quarterly dividend of 72 cents per share (annualized $2.88) payable Jun 11 to shareholders of record, as of May 4. The company boasts an excellent record of dividend disbursements. It has paid dividends for the straight 143 quarters since its inception in 1982.
Upcoming Releases
Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players like American Airlines Group Inc. (AAL - Free Report) , Southwest Airlines Co. (LUV - Free Report) and Union Pacific Corporation (UNP - Free Report) , all scheduled to release respective financial numbers on Apr 26.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
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Norfolk Southern (NSC) Surpasses on Q1 Earnings & Revenues
Norfolk Southern Corporation (NSC - Free Report) reported first-quarter 2018 earnings of $1.93 per share, surpassing the Zacks Consensus Estimate of $1.77. The bottom line also improved 30% on a year-over-year basis. Results were aided by an impressive performance at the.
Railway operating revenues in the quarter under review came in at $2,717 million, above the Zacks Consensus Estimate of $2,681.8 million. The top line also rose 5.5% on a year-over-year basis. Overall, volumes expanded 3% on the back of a solid performance at the intermodal segment.
Income from railway operations climbed 10% year over year to $835 million. Operating expenses increased 4% year over year to $1.9 billion. Railway operating expenses rose due to higher fuel prices as well as costs related to overall lower network velocity.
Norfolk Southern’s operating ratio (operating expenses as a percentage of revenues) in the first quarter of 2018 came in at 69.3% compared with 70% in the first quarter of 2017.
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 3.3% to $434 million.
Merchandise revenues inched up 1.3% year over year to $1,605 million.
Intermodal revenues rose 18.7% year over year to $678 million.
Liquidity
This Zacks Rank #3 (Hold) exited the first quarter with cash and cash equivalents of $1,072 million compared with $690 million at the end of 2017. The company had long-term debt of $9,637 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.
With the company having delivered a sound financial performance in the first quarter, it keeps its optimism alive on its prospects in 2018. It has also increased its expected annual share repurchases to $1.5 billion.
Dividend
Norfolk Southern's board of directors approved a quarterly dividend of 72 cents per share (annualized $2.88) payable Jun 11 to shareholders of record, as of May 4. The company boasts an excellent record of dividend disbursements. It has paid dividends for the straight 143 quarters since its inception in 1982.
Upcoming Releases
Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players like American Airlines Group Inc. (AAL - Free Report) , Southwest Airlines Co. (LUV - Free Report) and Union Pacific Corporation (UNP - Free Report) , all scheduled to release respective financial numbers on Apr 26.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>