Norfolk Southern Corporation


SKU: NSC-1 Category:


Norfolk Southern Corporation delivered a mixed result in the recent quarter, with revenues above market expectations, but it failed to surpass the analyst consensus in terms of earnings. Revenues were down 11%, while adjusted operating expenses decreased by 1%. The revenue decline primarily resulted from reduced fuel surcharge revenue and a drop in intermodal storage revenue. Norfolk Southern’s management remains optimistic about pricing and mix dynamics in the future. The adjusted operating ratio for the third quarter was 69.1%. While service issues are expected to unwind in the third quarter, additional challenges resulted in a delay in the fourth quarter. Investments in locomotives and the craft workforce are aimed at building resiliency for the future, accommodating higher volumes, and improving productivity. Norfolk Southern’s financials also saw other income increase by $42 million, primarily driven by favorable returns from company-owned life insurance. Additionally, Norfolk Southern is implementing Digital Train Inspection Portals to improve rail safety throughout its extensive network spanning 22 states. The portals incorporate advanced Machine Vision Inspection technology, which the GTRI collaboratively developed for the hardware and Norfolk Southern’s Data Science/AI and Mechanical teams for the program’s intelligence.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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