Norfolk Southern (NSC) Tops Q2 Earnings Estimates

Core Viewpoint - Norfolk Southern reported quarterly earnings of $3.29 per share, exceeding the Zacks Consensus Estimate of $3.27 per share, and showing an increase from $3.06 per share a year ago, indicating a positive earnings surprise of +0.61% [1] Financial Performance - The company posted revenues of $3.11 billion for the quarter ended June 2025, which was below the Zacks Consensus Estimate by 0.76%, but an increase from $3.04 billion year-over-year [2] - Over the last four quarters, Norfolk Southern has surpassed consensus EPS estimates three times, but has only topped revenue estimates once [2] Stock Performance - Norfolk Southern shares have increased approximately 22% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.6% [3] Future Outlook - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $3.33 for the coming quarter and $12.63 for the current fiscal year [7] - The Zacks Rank for Norfolk Southern is currently 4 (Sell), indicating expectations of underperformance in the near future [6] Industry Context - The Transportation - Rail industry, to which Norfolk Southern belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Another company in the same industry, Canadian Pacific Kansas City, is expected to report earnings soon, with a consensus EPS estimate of $0.82, reflecting a year-over-year increase of +6.5% [9]