Norfolk Southern (NYSE:NSC) Reaches New 12-Month High After Earnings Beat

Norfolk Southern Corporation (NYSE:NSC)’s stock price reached a new 52-week high during trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $358.30 and last traded at $355.5170, with a volume of 322516 shares. The stock had previously closed at $330.94.

The railroad operator reported $3.52 earnings per share for the quarter, beating the consensus estimate of $3.32 by $0.20. The firm had revenue of $3.46 billion during the quarter, compared to the consensus estimate of $3.38 billion. Norfolk Southern had a return on equity of 18.21% and a net margin of 21.02%.The business’s revenue was up 12.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $3.29 earnings per share.

Norfolk Southern Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Investors of record on Friday, August 7th will be issued a dividend of $1.35 per share. This represents a $5.40 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date is Friday, August 7th. Norfolk Southern’s dividend payout ratio is currently 45.49%.

Norfolk Southern News Summary

Here are the key news stories impacting Norfolk Southern this week:

• Positive Sentiment: Norfolk Southern beat Q2 expectations, posting $3.52 in EPS and revenue above estimates, with revenue up 12.5% year over year and record quarterly sales. Reuters article
• Positive Sentiment: Wells Fargo raised its price target to $385 and reiterated an overweight rating, signaling confidence that the stock still has room to run. Benzinga article
• Positive Sentiment: Citigroup lifted its target to $376, reflecting a more constructive view after the earnings release, even though it kept a neutral rating. Benzinga article
• Neutral Sentiment: JPMorgan raised its target to $338 but maintained a neutral rating, suggesting valuation looks less compelling after the recent move higher. Benzinga article
• Neutral Sentiment: Some commentary noted lower profitability and margin pressure despite the revenue beat, which may temper enthusiasm if cost pressures persist. Seeking Alpha article
• Negative Sentiment: Profitability was held back by higher fuel costs and lower efficiency, showing that cost inflation remains a headwind even as demand improves. TipRanks article

Analyst Upgrades and Downgrades

NSC has been the subject of a number of analyst reports. Royal Bank Of Canada increased their target price on shares of Norfolk Southern from $320.00 to $360.00 and gave the stock a “sector perform” rating in a report on Friday. TD Cowen upped their price target on Norfolk Southern from $337.00 to $376.00 and gave the company a “buy” rating in a research report on Friday. UBS Group reiterated a “neutral” rating and issued a $363.00 price objective on shares of Norfolk Southern in a research report on Friday. Susquehanna boosted their target price on Norfolk Southern from $337.00 to $360.00 and gave the company a “neutral” rating in a research note on Tuesday, July 14th. Finally, Rothschild & Co Redburn upped their target price on Norfolk Southern from $308.00 to $315.00 and gave the company a “neutral” rating in a report on Wednesday, April 29th. Six research analysts have rated the stock with a Buy rating and seventeen have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Norfolk Southern has an average rating of “Hold” and an average target price of $344.35.

Institutional Trading of Norfolk Southern

Hedge funds have recently made changes to their positions in the stock. Tema ETFs LLC increased its holdings in Norfolk Southern by 8.6% in the 2nd quarter. Tema ETFs LLC now owns 3,662 shares of the railroad operator’s stock worth $1,152,000 after buying an additional 290 shares in the last quarter. Ausbil Investment Management Ltd boosted its holdings in shares of Norfolk Southern by 6.4% during the 2nd quarter. Ausbil Investment Management Ltd now owns 28,026 shares of the railroad operator’s stock valued at $8,940,000 after acquiring an additional 1,697 shares during the last quarter. E. Ohman J or Asset Management AB grew its stake in shares of Norfolk Southern by 0.9% in the second quarter. E. Ohman J or Asset Management AB now owns 7,707 shares of the railroad operator’s stock worth $2,425,000 after acquiring an additional 70 shares during the period. Handelsbanken Fonder AB grew its stake in shares of Norfolk Southern by 1.7% in the second quarter. Handelsbanken Fonder AB now owns 123,304 shares of the railroad operator’s stock worth $38,790,000 after acquiring an additional 2,023 shares during the period. Finally, Tenzing Financial LLC purchased a new position in shares of Norfolk Southern during the second quarter valued at approximately $572,000. 75.10% of the stock is owned by institutional investors.

Norfolk Southern Price Performance

The stock has a market capitalization of $78.99 billion, a PE ratio of 30.01, a PEG ratio of 6.37 and a beta of 1.27. The firm’s fifty day moving average price is $317.37 and its two-hundred day moving average price is $306.16. The company has a quick ratio of 0.81, a current ratio of 0.83 and a debt-to-equity ratio of 0.98.

About Norfolk Southern

Norfolk Southern Corporation is a major U.S. freight railroad company that provides rail transportation and related logistics services. As a Class I carrier, the company operates an extensive network across the eastern United States and offers scheduled freight service for a broad range of industries. Its core operations include long-haul and regional rail freight transportation, intermodal services that move containers and trailers between rail and other modes, and terminal and switching services that support efficient rail shipments for industrial and port customers.

The company transports a variety of commodities, serving sectors such as coal and energy, automotive and automotive parts, chemicals, agriculture, metals and construction materials, and consumer goods.