As of late October 2025 (Week 43), U.S. Class I railroads are navigating a landscape of tepid growth tempered by recent declines. According to the latest data from the Association of American Railroads (AAR), U.S. rail volumes for the week ending October 25 (Week 43) dipped 3% year-over-year, with 498,462 combined carloads and intermodal units moved. This marks a slight deterioration from the flat four-week and quarter-to-date (QTD) trends, though year-to-date (YTD) volumes remain up 2%. The figures, drawn ...

Core Viewpoint - Norfolk Southern Corporation (NSC) is a significant player in the rail freight transportation sector, competing with major companies like Union Pacific and CSX Corporation. The company has shown strong performance despite recent stock price adjustments and market volatility [1][2][3]. Group 1: Stock Performance - RBC Capital maintained a "Sector Perform" rating for NSC, with a revised price target lowered from $320 to $315 [2][5]. - NSC has outperformed the S&P 500 by approximately 10% since the last review, indicating solid performance despite a slight decrease in stock price to $281.89, down 0.68% today [2][5]. - The stock's trading range today has been between $280.46 and $285.08, with a yearly high of $302.24 and a low of $201.63, reflecting significant volatility [3]. Group 2: Market Capitalization and Investor Interest - Norfolk Southern's market capitalization is around $63.25 billion, with a trading volume of 693,595 shares, suggesting strong investor interest [4][5]. Group 3: Potential Deals and Future Impact - Investors should monitor the potential deal with Union Pacific, which could have a significant impact on both companies over the next year [4][5].

Core Viewpoint - Norfolk Southern Corporation (NSC) is positioned for potential growth with a price target of $315 set by RBC Capital, indicating an 11.9% upside from its current trading price of $281.50 [1]. Financial Performance - The Q3 2025 earnings call on October 23, 2025, included key executives and attracted analysts from major financial institutions, highlighting strong interest in NSC's financial performance and strategic direction [2]. - NSC's current stock price is $281.58, showing a slight decrease of $2.25 or approximately -0.79%, with a daily trading range between $281.02 and $285.08 [3]. Market Position - Norfolk Southern's market capitalization stands at approximately $63.18 billion, reflecting its significant presence in the transportation sector [4]. - The trading volume on the NYSE is 391,369 shares, indicating active investor interest in the company's stock [4].

Earlier this year I covered Norfolk Southern (NYSE: NSC ) following their Q1 2025 earnings release. At that time, the stock was trading for approximately $220 per share, and appeared to be trading for a 10% discount to its fair value based on myI have a masters degree in Analytics from Northwestern University and a bachelors degree in Accounting. I have worked in the investment arena for over 10 years starting as an analyst and working my way up to a management role. Dividend investing is a personal hobby a ...

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Core Insights - Norfolk Southern reported revenue of $3.1 billion for the quarter ended September 2025, reflecting a 1.7% increase year-over-year and exceeding the Zacks Consensus Estimate of $3.09 billion by 0.44% [1] - The company's EPS for the quarter was $3.30, up from $3.25 in the same quarter last year, surpassing the consensus EPS estimate of $3.18 by 3.77% [1] Financial Performance Metrics - Railway Operating Ratio was reported at 64.6%, higher than the estimated 63.7% by analysts [4] - Total carloads volume was 1.8 million, matching the average estimate [4] - Intermodal carloads volume was 1.03 million, consistent with the average estimate [4] - Merchandise carloads volume was 595.1 thousand, exceeding the estimated 589.88 thousand [4] - Coal carloads volume was 176.7 thousand, slightly below the estimated 179.4 thousand [4] Revenue Breakdown - Railway operating revenues from Merchandise (Agriculture, forest, and consumer products) were $630 million, slightly below the estimate of $639.63 million, with a year-over-year change of +1% [4] - Railway operating revenues from Coal were $375 million, below the estimate of $389.94 million, representing a year-over-year decline of 12.2% [4] - Railway operating revenues from Chemicals were $569 million, surpassing the estimate of $560.89 million, with a year-over-year increase of +4.8% [4] - Railway operating revenues from Intermodal were $759 million, slightly below the estimate of $760.31 million, with a year-over-year change of -0.5% [4] - Railway operating revenues from Automotive were $322 million, exceeding the estimate of $299.46 million, reflecting a year-over-year increase of +17.5% [4] - Total Railway operating revenues from Merchandise were $1.97 billion, above the estimate of $1.95 billion, with a year-over-year change of +5.8% [4] - Railway operating revenues from Metals and construction were $448 million, slightly below the estimate of $452.58 million, with a year-over-year increase of +6.7% [4] Stock Performance - Norfolk Southern's shares have returned -1.6% over the past month, contrasting with the Zacks S&P 500 composite's +0.2% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Norfolk Southern (NSC) came out with quarterly earnings of $3.3 per share, beating the Zacks Consensus Estimate of $3.18 per share. This compares to earnings of $3.25 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +3.77%. A quarter ago, it was expected that this railroad would post earnings of $3.27 per share when it actually produced earnings of $3.29, delivering a surprise of +0.61%.Over the last four quarters, the company ...

Norfolk Southern (NYSE:NSC) Q3 2025 Earnings Call October 23, 2025 04:30 PM ET Company ParticipantsBrian Ossenbeck - Managing DirectorChris Wetherbee - Managing Director and Head of Transportation and Shipping ResearchJonathan Chappell - Senior Managing Director of Transportation TeamJohn Orr - COOMark George - President and CEOJason Zampi - CFOLuke Nichols - Senior Director of Investor RelationsEd Elkins - Chief Commercial OfficerRicha Harnain - Director of Institutional Equity SalesConference Call Partici ...

Norfolk Southern (NYSE:NSC) Q3 2025 Earnings Call October 23, 2025 04:30 PM ET Company ParticipantsBrian Ossenbeck - Managing DirectorChris Wetherbee - Managing Director and Head of Transportation and Shipping ResearchJonathan Chappell - Senior Managing Director of Transportation TeamJohn Orr - COOMark George - President and CEOJason Zampi - CFOLuke Nichols - Senior Director of Investor RelationsEd Elkins - Chief Commercial OfficerRicha Harnain - Director of Institutional Equity SalesConference Call Partici ...

Financial Data and Key Metrics Changes - The operating ratio for the quarter was reported at 63.3, reflecting a 10-basis point improvement year-over-year [18][21] - Earnings per share were $3.30, with total costs impacted by various factors including a $13 million incident cost and $15 million in merger-related expenses [18][21] - Revenue increased by 2% year-over-year, but was approximately $75 million short of expectations due to macro headwinds and competitor responses [19][21] Business Line Data and Key Metrics Changes - Merchandise volume grew by 6% year-over-year, driven by strong performance in auto, chemical, and metals markets, while intermodal volumes decreased by 2% due to external market pressures [13][15] - Coal revenue was significantly impacted, with RPU less fuel down by 7%, primarily due to weakening seaborne coal prices [15][17] - The company achieved a 5.5% growth in merchandise carloads, alongside a 19% reduction in re-crews and a 12% decrease in intermodal train starts [10][19] Market Data and Key Metrics Changes - The intermodal market is facing challenges from trade and tariff uncertainties, as well as an oversupplied truck market, leading to softer import demand [16][17] - Coal prices remain pressured, with expectations of continued weakness in export coal markets, although utility demand is expected to support some segments [17] - The company anticipates volume pressure in intermodal segments due to intensified competitor activity related to the merger announcement [17] Company Strategy and Development Direction - The company is focused on maintaining safety and service while preparing for growth, particularly in light of the proposed merger with Union Pacific [6][22] - Norfolk Southern is committed to enhancing its operational efficiency, raising its cumulative efficiency target to approximately $600 million by 2026 [10][23] - The company is investing in technology and training to improve inspection and reliability, which is part of its broader strategy to transform operational performance [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain macroeconomic environment and the challenges posed by competitor reactions to the merger announcement [22] - The company remains optimistic about its path forward, emphasizing the importance of controlling costs and maintaining service quality [22][23] - Management highlighted the need to focus on safety and service as top priorities while navigating the competitive landscape [82] Other Important Information - The company recorded a significant land sale of $65 million, which helped mitigate some adverse impacts on revenue [19] - The third quarter saw improvements in safety metrics, with a 7.8% reduction in the FRA personal injury ratio and a 27.7% improvement in the train accident ratio [9] Q&A Session Summary Question: Impact of merger-related business losses - Management confirmed that the business losses related to the merger are primarily confined to intermodal and are expected to persist until the merger closes [25][26] Question: Cost structure management in a challenging environment - Management emphasized the importance of maintaining productivity and efficiency while managing costs, particularly in light of potential share loss [34][35] Question: Coal RPU pressure and future expectations - Management indicated that coal RPU pressure is expected to persist, with a potential stabilization in the near term but continued year-over-year declines [45][46] Question: Competitive responses and intermodal business retention - Management expressed confidence in retaining intermodal business due to strong service offerings and a well-established network, despite competitive pressures [51][53] Question: Integration risks with the merger - Management discussed strategies to mitigate integration risks, emphasizing the importance of maintaining service quality and operational efficiency during the merger process [103]