Norfolk Southern Beats on Both Top and Bottom Lines
Norfolk Southern (NYS: NSC) reported earnings on April 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Norfolk Southern beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.
Margins grew across the board.
Norfolk Southern reported revenue of $2.79 billion. The 19 analysts polled by S&P Capital IQ looked for net sales of $2.75 billion on the same basis. GAAP reported sales were 6.5% higher than the prior-year quarter's $2.62 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.23. The 22 earnings estimates compiled by S&P Capital IQ anticipated $1.14 per share. GAAP EPS of $1.23 for Q1 were 37% higher than the prior-year quarter's $0.90 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.7%, 370 basis points better than the prior-year quarter. Operating margin was 26.7%, 380 basis points better than the prior-year quarter. Net margin was 14.7%, 230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.97 billion. On the bottom line, the average EPS estimate is $1.53.
Next year's average estimate for revenue is $11.72 billion. The average EPS estimate is $5.79.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,140 members out of 1,170 rating the stock outperform, and 30 members rating it underperform. Among 323 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 317 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 $83.27.
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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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