Norfolk Southern (NSC) Q2 Earnings Preview: What You Should Know Beyond the Headline Estimates

Core Viewpoint - Norfolk Southern (NSC) is expected to report quarterly earnings of $3.26 per share, a 6.5% increase year-over-year, with revenues projected at $3.13 billion, reflecting a 2.9% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 2.2% over the past 30 days, indicating a reassessment by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock performance [3]. Revenue Projections - Analysts estimate 'Railway operating revenues - Merchandise - Agriculture, forest and consumer products' will reach $643.81 million, a year-over-year increase of 3.5% [5]. - 'Railway operating revenues - Coal' is expected to be $396.48 million, showing a slight decline of 0.4% [5]. - 'Railway operating revenues - Merchandise - Chemicals' is projected at $549.39 million, reflecting a 3.3% increase [6]. - 'Railway operating revenues - Intermodal' is forecasted to reach $765.09 million, indicating a 3.1% increase [6]. Volume Estimates - Total carloads (units) are expected to reach 1.81 million, up from 1.74 million year-over-year [7]. - Coal carloads are estimated at 176.35 thousand, compared to 162.90 thousand from the previous year [7]. - The 'Railway Operating Ratio' is projected to be 62.5%, slightly improving from 62.8% year-over-year [7]. Specific Merchandise Volume - 'Carloads (Units) - Volume - Merchandise - Agriculture, forest and consumer products' is estimated at 185.49 thousand, up from 181.20 thousand [8]. - 'Carloads (Units) - Volume - Merchandise - Automotive' is projected at 99.12 thousand, compared to 97.20 thousand last year [8]. - 'Carloads (Units) - Volume - Merchandise - Metals and construction' is expected to be 170.11 thousand, up from 167.90 thousand [9]. - 'Carloads (Units) - Volume - Merchandise - Chemicals' is estimated at 132.78 thousand, compared to 130.10 thousand last year [9]. Revenue per Carload - Revenue per carload (unit) for Intermodal is forecasted to be $735.20, slightly down from $739.00 in the same quarter last year [10]. Stock Performance - Norfolk Southern shares have increased by 9.8% over the past month, outperforming the Zacks S&P 500 composite, which rose by 5.7% [11].