Norfolk Southern Corporation reported a strong second-quarter earnings beat, with adjusted earnings of $3.52 per share, up 7% year over year and 9% above the Zacks Consensus Estimate of $3.23. Railway operating revenues rose 11% to a record $3.47 billion, driven by 4% volume growth and higher revenue per unit. The full-year earnings estimate has increased 3.9% over the past four weeks, and the stock carries a Zacks Rank #2 (Buy) with a Momentum Score of A. However, the stock trades at a premium valuation of 25.17 times forward earnings, near the top of its five-year historical range, and faces risks from cost inflation, service execution, and merger-related uncertainty following the Union Pacific agreement.
Norfolk Southern CorporationNorfolk Southern reported a strong Q2 earnings beat with adjusted EPS up 7% YoY and 9% above consensus, and record revenues.
Union Pacific Corporation