Norfolk Southern (NYSE:NSC) Releases Earnings Results, Beats Expectations By $0.05 EPS

Key Points

• Norfolk Southern reported an earnings per share (EPS) of $3.29 for the quarter, exceeding estimates by $0.05.
• The railroad operator announced a quarterly dividend of $1.35, representing an annualized dividend yield of 1.92%.
• Norfolk Southern's current market capitalization stands at $63.34 billion, with institutional investors holding 75.10% of the company's stock.

Norfolk Southern (NYSE:NSC - Get Free Report) posted its quarterly earnings results on Tuesday. The railroad operator reported $3.29 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.24 by $0.05, Zacks reports. The business had revenue of $3.11 billion during the quarter, compared to analyst estimates of $3.10 billion. Norfolk Southern had a return on equity of 19.35% and a net margin of 27.51%. Norfolk Southern updated its FY 2025 guidance to EPS.

Norfolk Southern Stock Performance

Shares of NSC stock traded up $1.75 during mid-day trading on Wednesday, hitting $279.45. 5,865,522 shares of the stock were exchanged, compared to its average volume of 2,520,969. The company has a debt-to-equity ratio of 1.11, a quick ratio of 0.70 and a current ratio of 0.79. Norfolk Southern has a 12-month low of $201.63 and a 12-month high of $288.11. The stock's fifty day simple moving average is $258.51 and its two-hundred day simple moving average is $244.17. The stock has a market capitalization of $63.00 billion, a price-to-earnings ratio of 18.88, a P/E/G ratio of 2.28 and a beta of 1.31.

Norfolk Southern Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 20th. Shareholders of record on Friday, August 1st will be issued a dividend of $1.35 per share. This represents a $5.40 annualized dividend and a dividend yield of 1.93%. The ex-dividend date of this dividend is Friday, August 1st. Norfolk Southern's payout ratio is 36.89%.

Hedge Funds Weigh In On Norfolk Southern

A hedge fund recently raised its stake in Norfolk Southern stock. Brighton Jones LLC boosted its position in Norfolk Southern Corporation (NYSE:NSC - Free Report) by 4.9% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,706 shares of the railroad operator's stock after purchasing an additional 79 shares during the period. Brighton Jones LLC's holdings in Norfolk Southern were worth $400,000 as of its most recent filing with the Securities & Exchange Commission. 75.10% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research analysts recently commented on NSC shares. Barclays upped their price objective on Norfolk Southern from $290.00 to $300.00 and gave the company an "overweight" rating in a report on Wednesday. TD Cowen upgraded Norfolk Southern from a "hold" rating to a "buy" rating and upped their price objective for the company from $263.00 to $323.00 in a report on Monday, July 21st. The Goldman Sachs Group reiterated a "neutral" rating and issued a $278.00 price objective on shares of Norfolk Southern in a report on Monday, June 2nd. Royal Bank Of Canada decreased their price objective on Norfolk Southern from $271.00 to $270.00 and set an "outperform" rating on the stock in a report on Thursday, April 24th. Finally, Susquehanna restated a "neutral" rating and set a $260.00 price target (up from $250.00) on shares of Norfolk Southern in a research note on Tuesday, June 24th. Thirteen investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $285.15.

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.