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Atlanta, Georgia-based Norfolk Southern Corporation (NSC) provides rail transportation services. Valued at $59.2 billion by market cap, the company transports raw materials, intermediate products, and finished goods via interchange with rail carriers. NSC also transports overseas freight through several Atlantic and Gulf Coast ports. The leader in the transportation industry is expected to announce its fiscal second-quarter earnings for 2025 before the market opens on Tuesday, Jul. 29.
Ahead of the event, analysts expect NSC to report a profit of $3.23 per share on a diluted basis, up 5.6% from $3.06 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect NSC to report EPS of $12.73, up 7.4% from $11.85 in fiscal 2024. Its EPS is expected to rise 11.7% year over year to $14.22 in fiscal 2026.
NSC stock has outperformed the S&P 500 Index’s ($SPX) 11.9% gains over the past 52 weeks, with shares up 20.4% during this period. However, it underperformed the Industrial Select Sector SPDR Fund’s (XLI) 22.8% rise over the same time frame.
Norfolk Southern's outperformance can be attributed to strong demand from ecommerce, supported by its efficient operating plan and focus on shareholder rewards. The company's efforts to improve service, safety, and productivity are commendable, despite challenges. The recent progress in the U.S.-China trade negotiations has also boosted market sentiment and railroad stocks like NSC, as hopes for improved port activity and freight volumes rise.
On Apr. 23, NSC shares closed up marginally reporting its Q1 results. Its adjusted EPS of $2.69 missed Wall Street expectations of $2.72. The company’s revenue was $3 billion, matching Wall Street forecasts.
Analysts’ consensus opinion on NSC stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 24 analysts covering the stock, 12 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” 10 give a “Hold,” and one indicates a “Strong Sell.” NSC’s average analyst price target is $262.77, indicating a potential upside of 1.1% from the current levels.
