Zacks Research Expects Reduced Earnings for Norfolk Southern

Norfolk Southern Co. (NYSE:NSC) – Zacks Research lowered their Q4 2024 earnings estimates for shares of Norfolk Southern in a note issued to investors on Monday, November 11th. Zacks Research analyst R. Department now anticipates that the railroad operator will post earnings per share of $2.94 for the quarter, down from their previous estimate of $3.03. The consensus estimate for Norfolk Southern’s current full-year earnings is $11.81 per share. Zacks Research also issued estimates for Norfolk Southern’s Q1 2025 earnings at $2.85 EPS, Q2 2025 earnings at $3.38 EPS, Q3 2025 earnings at $3.40 EPS, Q4 2025 earnings at $3.31 EPS, FY2025 earnings at $12.92 EPS, Q1 2026 earnings at $3.44 EPS, Q2 2026 earnings at $3.76 EPS, Q3 2026 earnings at $3.69 EPS and FY2026 earnings at $14.19 EPS.

A number of other research firms also recently issued reports on NSC. JPMorgan Chase & Co. lifted their price objective on shares of Norfolk Southern from $283.00 to $288.00 and gave the company an “overweight” rating in a report on Wednesday, October 23rd. Stifel Nicolaus lifted their price objective on shares of Norfolk Southern from $241.00 to $245.00 and gave the company a “hold” rating in a report on Friday, October 11th. Royal Bank of Canada raised their target price on shares of Norfolk Southern from $272.00 to $282.00 and gave the company an “outperform” rating in a research note on Wednesday, October 23rd. Bank of America raised their target price on shares of Norfolk Southern from $276.00 to $291.00 and gave the company a “buy” rating in a research note on Wednesday, October 23rd. Finally, Citigroup raised their target price on shares of Norfolk Southern from $302.00 to $316.00 and gave the company a “buy” rating in a research note on Tuesday. One analyst has rated the stock with a sell rating, five have assigned a hold rating and thirteen have assigned a buy rating to the stock. According to data from MarketBeat, Norfolk Southern has a consensus rating of “Moderate Buy” and a consensus price target of $274.89.

Norfolk Southern Price Performance

NYSE NSC opened at $267.45 on Tuesday. The company has a quick ratio of 0.65, a current ratio of 0.73 and a debt-to-equity ratio of 1.21. Norfolk Southern has a 12-month low of $195.76 and a 12-month high of $277.60. The company has a market capitalization of $60.51 billion, a PE ratio of 25.17, a price-to-earnings-growth ratio of 2.58 and a beta of 1.30. The firm’s 50 day moving average is $252.07 and its 200-day moving average is $238.05.

Norfolk Southern (NYSE:NSC) last posted its quarterly earnings data on Tuesday, October 22nd. The railroad operator reported $3.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.11 by $0.14. Norfolk Southern had a net margin of 19.85% and a return on equity of 20.25%. The company had revenue of $3.10 billion for the quarter, compared to the consensus estimate of $3.08 billion. During the same period last year, the company earned $2.65 earnings per share. The firm’s revenue was up 3.3% compared to the same quarter last year.

Norfolk Southern Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 20th. Stockholders of record on Friday, November 1st will be given a $1.35 dividend. The ex-dividend date of this dividend is Friday, November 1st. This represents a $5.40 dividend on an annualized basis and a dividend yield of 2.02%. Norfolk Southern’s payout ratio is presently 50.70%.

Insider Activity

In other news, CEO Alan H. Shaw sold 51,325 shares of the business’s stock in a transaction dated Friday, September 13th. The shares were sold at an average price of $255.98, for a total value of $13,138,173.50. Following the completion of the sale, the chief executive officer now owns 35,045 shares of the company’s stock, valued at approximately $8,970,819.10. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. In related news, Director Sameh Fahmy purchased 1,000 shares of the company’s stock in a transaction that occurred on Thursday, October 24th. The stock was acquired at an average price of $255.00 per share, with a total value of $255,000.00. Following the completion of the purchase, the director now directly owns 10,000 shares in the company, valued at $2,550,000. This trade represents a 0.00 % increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Alan H. Shaw sold 51,325 shares of the business’s stock in a transaction dated Friday, September 13th. The shares were sold at an average price of $255.98, for a total value of $13,138,173.50. Following the completion of the transaction, the chief executive officer now directly owns 35,045 shares of the company’s stock, valued at approximately $8,970,819.10. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. 0.19% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Daiwa Securities Group Inc. raised its stake in Norfolk Southern by 6.6% during the third quarter. Daiwa Securities Group Inc. now owns 27,648 shares of the railroad operator’s stock worth $6,871,000 after acquiring an additional 1,715 shares in the last quarter. Garner Asset Management Corp raised its stake in Norfolk Southern by 3.2% during the third quarter. Garner Asset Management Corp now owns 3,168 shares of the railroad operator’s stock worth $787,000 after acquiring an additional 97 shares in the last quarter. Summit Trail Advisors LLC raised its stake in Norfolk Southern by 23.1% during the third quarter. Summit Trail Advisors LLC now owns 1,579 shares of the railroad operator’s stock worth $392,000 after acquiring an additional 296 shares in the last quarter. SevenBridge Financial Group LLC raised its stake in Norfolk Southern by 1.1% during the third quarter. SevenBridge Financial Group LLC now owns 12,377 shares of the railroad operator’s stock worth $3,356,000 after acquiring an additional 140 shares in the last quarter. Finally, Wealth Dimensions Group Ltd. acquired a new position in Norfolk Southern during the third quarter worth about $223,000. Institutional investors and hedge funds own 75.10% of the company’s stock.

About Norfolk Southern

Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. The company transports agriculture, forest, and consumer products comprising soybeans, wheat, corn, fertilizers, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, beverages, and canned goods; chemicals consist of sulfur and related chemicals, petroleum products comprising crude oil, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, sand, and natural gas liquids; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and military-related products; and automotive, including finished motor vehicles and automotive parts, as well as coal.