- Norfolk Southern Corp (NYSE:NSC) reported first-quarter FY22 railway operating revenue growth of 10% year-over-year to $2.9 billion, beating the consensus of $2.84 billion.
- Revenue was driven by a 16% increase in revenue per unit.
- Sales by segments: Merchandise $1.67 billion (+3.9% Y/Y), Intermodal $854 million (+18.9% Y/Y) and Coal $389 million (+24.7% Y/Y).
- Income from railway operations increased by 6.9% Y/Y to $1.09 billion, and the margin contracted 124 basis points to 37.2%.
- EPS improved to $2.93 from $2.66 in 1Q21, beating the consensus of $2.92.
- The railway operating ratio was 62.8%, an improvement of 130 bps compared to 1Q21.
- Norfolk Southern generated a Q1 operating cash flow of $994 million, compared to $1.02 billion a year ago.
- FY22 Outlook: Norfolk Southern expects revenue to grow upper single-digit year-over-year and 50-100 bps improvement in operating ratio.
- Price Action: NSC shares traded higher by 2.66% at $261.42 on the last check Wednesday.
