This is our first report on rail transport major, Norfolk Southern. The company delivered strong financial results in Q3 surpassing Wall Street expectations in terms of revenues as well as earnings. The management showed its commitment to productivity and efficiency by significantly improving its operating ratio. They are actively qualifying conductors, carrying out and fine-tuning their TOP|SPG operating strategy, and bolstering their leadership group and operations. Customer-facing service indicators are improving. Norfolk also made provisional agreements with the unions that stand in for their craft co-workers for the quarter. This was an essential initial action. The tentative agreements retain their personnel among the top-paid craft workers in any industry and acknowledge their substantial contributions. Furthermore, coal market conditions were advantageous, allowing the company to produce a 43% increase in franchise revenue from volume growth, pricing improvement, and fuel surcharge revenue. Utility coal shipments were up on higher demand due to high natural gas costs and were the main contributor to volume rise. We initiate coverage on the stock of Norfolk Southern Corporation with a ‘Hold’ rating.
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
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