Norfolk Southern Increases Sales but Misses Revenue Estimate
Norfolk Southern (NYS: NSC) reported earnings on Jan. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Norfolk Southern missed slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and earnings per share grew significantly.
Margins increased across the board.
Norfolk Southern booked revenue of $2.8 billion. The 18 analysts polled by S&P Capital IQ predicted revenue of $2.8 billion. Sales were 17% higher than the prior-year quarter's $2.4 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.39. The 25 earnings estimates compiled by S&P Capital IQ forecast $1.40 per share on the same basis. GAAP EPS of $1.42 for Q4 were 30% higher than the prior-year quarter's $1.09 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 62.7%, 2,720 basis points better than the prior-year quarter. Operating margin was 28.6%, 130 basis points better than the prior-year quarter. Net margin was 17.2%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.8 billion. On the bottom line, the average EPS estimate is $1.23.
Next year's average estimate for revenue is $11.9 billion. The average EPS estimate is $5.98.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,084 members out of 1,112 rating the stock outperform, and 28 members rating it underperform. Among 353 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 347 give Norfolk Southern a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Norfolk Southern is outperform, with an average price target of $84.70.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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