CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Norfolk Southern hits cruise control in Q3

By Robert Davis

19:57, 27 October 2021

Norfolk Southern train riding on train tracks
credit: Shutterstock

Shares of Norfolk Southern were up more than 1% to $289.72 (£210.67) on Wednesday after the company released Q3 earnings that showed a greater demand for railway transportation.

Shares are up more than 2% over the last week, and have increased nearly 13% since 1 October.

Earnings details

James Squires, Norfolk Southern’s CEO, said in a press release that the company broke “a number of records” in Q3.

“The actions taken by our employees show our commitment to find sustainable solutions for our customers and shareholders in the face of significant supply chain disruptions,” Squires said.  

According to the railway’s Q3 earnings statement, Norfolk Southern earned a net income of $753m on more than $2.85bn in operating revenue. The company’s operating revenue increased 14% when compared to last year.

These earnings produced EPS of $3.06 for investors.

Analysts at MarketBeat projected the company to report EPS of $2.94 ahead of the announcement.

XRP/USD

0.54 Price
+3.150% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.00499

US30

33,819.00 Price
+0.180% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 2

US100

14,509.50 Price
-0.320% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 1.8

ETH/USD

1,894.04 Price
+0.260% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 5.00

Income from railway expenses increased to $1.1bn, a 35% increase on a year-over-year basis. In all, Norfolk Southern earned more than $246m more in Q3 2021 than it did in Q3 2020.

Operating expenses

The railway was able increase its revenues without a significant increase in operating expenses as well, the earnings statement shows. In Q3, Norfolk Southern’s railway operating expenses increased to $1.7bn, a 3% increase when compared to this time last year.

However, the company said last year’s results included a $99m impairment charge. Excluding the impairment charge, Q3’s operating expenses were up by $149m or 10% when compared to 2020, the earnings statement said.

Norfolk Southern was also able to improve its operating ratio by 630 basis points up to 60.3% when compared to last year.

If last year’s impairment charge is excluded, the company’s operating ratio increased by 230 basis points, according to the earnings.

Read more: US election-driven forex forecast: how will the outcome impact the currencies market?

Related topics

Rate this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 535.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading