Norfolk Southern (NSC) came out with quarterly earnings of $3.22 per share, beating the Zacks Consensus Estimate of $2.78 per share. This compares to earnings of $3.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +15.92%. A quarter ago, it was expected that this railroad would post earnings of $3.18 per share when it actually produced earnings of $3.3, delivering a surprise of +3.77%.Over the last four quarters, the company ...

Canadian Pacific Kansas City (CP) came out with quarterly earnings of $0.95 per share, missing the Zacks Consensus Estimate of $0.99 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.04%. A quarter ago, it was expected that this railroad would post earnings of $0.81 per share when it actually produced earnings of $0.8, delivering a surprise of -1.23%.Over the last four quarters, t ...

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it ...

Core Viewpoint - Union Pacific reported quarterly earnings of $2.86 per share, missing the Zacks Consensus Estimate of $2.9 per share, and showing a decline from $2.91 per share a year ago, indicating an earnings surprise of -1.47% [1] Financial Performance - The company posted revenues of $6.09 billion for the quarter ended December 2025, missing the Zacks Consensus Estimate by 0.82%, and down from $6.12 billion year-over-year [2] - Over the last four quarters, Union Pacific has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Union Pacific shares have lost about 0.2% since the beginning of the year, while the S&P 500 has gained 1.5% [3] - The current status translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $2.94 on revenues of $6.14 billion, and for the current fiscal year, it is $12.38 on revenues of $25.43 billion [7] - The estimate revisions trend for Union Pacific was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Transportation - Rail industry is currently in the bottom 16% of the Zacks industries, suggesting that the outlook for the industry can materially impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

CSX (CSX) came out with quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -6.14%. A quarter ago, it was expected that this freight railroad would post earnings of $0.42 per share when it actually produced earnings of $0.44, delivering a surprise of +4.76%.Over the last four quarters, the company has ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Norfolk Southern (NSC) reports results for the quarter ended December 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on January ...

Core Insights - Canadian National Railway (CNI) achieved a record grain movement of over 3.28 million metric tonnes from Western Canada in November 2025, surpassing the previous record by 230,000 metric tonnes set in November 2020, marking the third consecutive month of strong grain movement [1][7] Group 1: Operational Performance - The achievement reflects CNI's strong execution capabilities and commitment to efficient grain transportation during the harvest season, emphasizing service reliability and collaboration with customers [2] - CNI's Grain & Fertilizers segment saw a 6% year-over-year increase in freight revenues during the first nine months of 2025 [4] Group 2: Winter Preparedness - CNI released its 2025-2026 Winter Plan, which includes enhanced locomotive reliability programs, strategic resource allocation, and targeted infrastructure investments to minimize weather-related disruptions [3][7] Group 3: Market Position - CNI currently holds a Zacks Rank 3 (Hold), with its share price rising 4% over the past three months, underperforming the Transportation - Rail industry's growth of 6.3% [5]

Core Viewpoint - Canadian Pacific Kansas City Limited (CP) is currently facing multiple challenges that make it an unattractive investment option [1] Earnings Estimates - The Zacks Consensus Estimate for first-quarter 2026 earnings has decreased by 2.25% over the past 60 days, with downward revisions of 2.92% and 3.78% for 2025 and 2026, respectively, indicating a lack of confidence from brokers [2][3] - The current earnings estimates are 0.87 for the next quarter, 3.33 for the current year, and 3.82 for the next year, showing a downward trend in revisions [3] Price Performance - CP's stock has declined by 9.7% over the past year, while the Transportation - Rail industry has seen a growth of 3.3% [3] Operating Expenses - Operating expenses for CP rose by 1.5% year over year in the first nine months of 2025, with labor costs increasing by 0.7% despite a 3% decrease in fuel expenses [5][7] Financial Health - CP has high leverage, exiting Q3 2025 with cash and cash equivalents of C$411 million against long-term debt of C$21.5 billion, indicating insufficient cash to meet short-term obligations [8] - The company operates in a challenging macro environment characterized by economic uncertainty and geopolitical tensions [8] Industry Ranking - The rail industry has a Zacks Industry Rank of 175 out of 243, placing it in the bottom 27%, which negatively impacts CP's stock performance [9]

Core Insights - Canadian National Railway (CNI) is facing significant challenges that are adversely affecting its financial stability, primarily due to increased operating expenses and weak liquidity, making it less attractive for investors [1][6]. Financial Performance - The Zacks Consensus Estimate for CNI's current quarter earnings has been revised downward by 6% over the past 60 days, and for 2025, the estimate has been cut by 2.7% in the same period [1]. - CNI's stock price has decreased by 18.7% over the past year, which is a stark contrast to the Transportation - Rail industry's decline of 7.6% [2][6]. Industry Position - CNI currently holds a Zacks Rank of 5 (Strong Sell), indicating a weak position in the market [4]. - The industry rank for CNI is 211 out of 243, placing it in the bottom 13% of Zacks Industries, which suggests a challenging environment for the company [4]. Earnings Surprise History - CNI has a disappointing earnings surprise history, having underperformed the Zacks Consensus Estimate in two of the last four quarters, with an average miss of 0.07% [5]. Operating Expenses and Liquidity - The company's operating expenses are projected to rise from $10.27 billion in 2022 to $10.8 billion in 2024, which is straining profitability and operational efficiency [7]. - CNI's current ratio has remained below one for several years, indicating insufficient short-term assets to cover short-term liabilities. The ratio fell from 0.84 in 2022 to 0.61 in 2023, slightly improved to 0.66 in 2024, but declined again to 0.60 in Q3 2025 [8].

Core Viewpoint - The Zacks Transportation - Rail industry is facing multiple challenges, including tariff-induced economic uncertainties, inflationary pressures, high interest rates, and supply-chain disruptions. However, Union Pacific Corporation and CSX Corporation are positioned to navigate these challenges effectively, aided by declining fuel costs which support bottom-line growth [1]. Industry Description - The Zacks Transportation - Rail industry comprises railroad operators that transport various freight types across North America, focusing on logistics and supply-chain services. Revenue primarily comes from freight, with some companies also earning from rail-related services like repairs and land sales [2]. Factors Deciding the Industry's Outlook - Strong financial returns for shareholders are evident as companies increase dividends and buybacks, reflecting financial strength. CSX announced an 8.3% quarterly dividend increase, while Union Pacific raised its quarterly cash dividend by 3% to $1.38 per share [3]. - The decline in oil prices, which fell nearly 20% from the beginning of 2025, is a positive factor for the industry as it reduces fuel expenses, a significant cost for transportation companies [4]. - Economic uncertainty persists due to tariff policies that disrupt supply chains and increase costs, creating challenges for the industry and affecting investor sentiment [5]. Industry Performance and Valuation - The Zacks Transportation - Rail industry currently holds a Zacks Industry Rank of 211, placing it in the bottom 13% of over 250 Zacks industries, indicating gloomy near-term prospects [6][7]. - Over the past year, the industry has underperformed the S&P 500, declining 8.3% compared to the S&P 500's increase of 12.9%, while the broader sector fell by 15.5% [9][10]. - The industry is trading at a trailing 12-month price-to-book (P/B) ratio of 5.82X, lower than the S&P 500's 8.19X but above the sector's 3.12X [13]. Company Insights - Union Pacific, based in Omaha, NE, is well-positioned for growth due to stable e-commerce demand, cost-cutting efforts, and a strong track record of earnings surprises, having surpassed the Zacks Consensus Estimate in three of the past four quarters [17][18]. - CSX, located in Jacksonville, FL, anticipates total volume growth for 2025, focusing on operational excellence and efficiency initiatives, with capital expenditures projected at $2.5 billion this year [21][22]. CSX has also surpassed the Zacks Consensus Estimate in two of the past four quarters [23].