Rail Sector Sinks on Norfolk Southern Earnings Warning (CNI, CP, CSX, KSU, NSC, UNP)
The rail sector has taken a hit this morning after Norfolk Southern Corp. (NYSE: NSC) warned late yesterday that its third-quarter earnings will fall well below expectations.
Norfolk Southern now expects earnings of between $1.18 and $1.25 per share for the quarter that ends this month. That is well below the $1.64 per share that analysts surveyed by Thomson Reuters were expecting, as well as below the $1.59 per share in last year's quarter.
The company blamed the disappointing results on lower shipments of merchandise and of coal, as well as fuel surcharges that have not kept up with price increases.
Norfolk Southern is down more than 7% to $67.10, in a 52-week range of $57.57 to $78.50.
Union Pacific Corp. (NYSE: UNP) is down about 3% to $121.32, in a 52-week range of $77.73 to $129.27.
CSX Corp. (NYSE: CSX) is down almost 4% to $21.92, in a 52-week range of $17.69 to $23.71.
Canadian National Railway Co. (NYSE: CNI) is down more than 3% to $90.56, in a 52-week range of $61.82 to $94.83.
Canadian Pacific Railway Ltd.(NYSE: CP) is down less than 3% to $83.03, in a 52-week range of $44.74 to $88.23.
Kansas City Southern (NYSE: KSU) is down almost 3% to $76.91, in a 52-week range of $46.89 to $83.95.
Filed under: 24/7 Wall St. Wire, Earnings Warning, Transportation Tagged: CNI, CP, CSX, KSU, NSC, UNP