Norfolk Southern Q3 adj EPS beats estimates on increased rail demand

Overview

• US freight railroad's Q3 revenue rose 14% yr/yr, slightly beating analyst expectations

• Adjusted EPS for Q3 rose 10% yr/yr, beating analyst expectations

• Company performance aided by increased rail demand and productivity gains

Outlook

• Company expects growth opportunities from investments in network capacity and resilience

Result Drivers

• COST CONTROL - Co said disciplined cost control helped support earnings growth despite higher fuel costs

• RAIL DEMAND - Increased demand for rail service, partly due to a tighter trucking market, contributed to revenue growth

• PRODUCTIVITY GAINS - Productivity improvements across the network aided earnings growth

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 17 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the ground freight & logistics peer group is "buy."

• Wall Street's median 12-month price target for Norfolk Southern Corp is $354.50, about 8% above its October 21 closing price of $328.09

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 24 three months ago

Reuters Recommended Reads

• Oct 22 - Norfolk Southern tops profit estimates as freight demand stays strong

• Oct 22 - Union Pacific's third-quarter profit rises on pricing strength

• Oct 21 - CSX Q3 revenue beats estimates on higher fuel surcharges, freight volumes and pricing

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)