Is a Beat in Store for Norfolk Southern (NSC) in Q3 Earnings?
Norfolk Southern Corporation NSC is scheduled to report third-quarter 2023 results on Oct 25, before market open.
The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the preceding four quarters (missed once), the average beat being 3.00%.
Let’s see how things have shaped up for NSC this earnings season.
Q3 Expectations
The Zacks Consensus Estimate for NSC’s third-quarter 2023 revenues is pegged at $2.94 billion, indicating an 11.98% decline year over year. The top line is likely to have been weighed down by below-par performances of all three key segments, namely, Merchandise, Intermodal and Coal. Weakness in overall volumes due to headwinds like weak freight conditions, supply-chain woes and slower network velocity are hurting the top line.
On the flip side, NSC’s bottom line continues to grapple with high expenses. The recent negotiations with various labor groups are also likely to have pushed labor costs higher. High debt acts as another headwind. Notably, the Zacks Consensus Estimate for NSC’s third-quarter 2023 earnings has been revised downward by 20.1% in the past 90 days.
What Our Model Says
Our proven model predicts an earnings beat for Norfolk Southern this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Norfolk Southern has an Earnings ESP of +0.31% and a Zacks Rank #3.
Norfolk Southern Corporation Price and EPS Surprise
Norfolk Southern Corporation price-eps-surprise | Norfolk Southern Corporation Quote
Highlights of Q2
Norfolk Southern’s second-quarter 2023 earnings (excluding $1.39 from non-recurring items) of $2.95 per share fell short of the Zacks Consensus Estimate of $3.15 and declined 14.49% year over year. Results were hurt by high costs.
Operating revenues were $2,980 million, which lagged the Zacks Consensus Estimate of $3,071.8 million and decreased 8.31% year over year, with all key segments, including Merchandise, Intermodal and Coal, registering deterioration in revenues.
Other Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat their third-quarter 2023 earnings:
Ryder System, Inc. R has an Earnings ESP of +5.48% and a Zacks Rank #1. R will release results on Oct 25. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for R’s third-quarter 2023 earnings has been revised upward by 13.8% in the past 90 days. R delivered a trailing four-quarter earnings surprise of 11.20%, on average.
Shares of R have gained 21.6% year to date.
Golar LNG Limited GLNG has an Earnings ESP of +18.00% and a Zacks Rank #3. GLNG will release results on Nov 21.
GLNG has an expected earnings growth rate of 13.64% for third-quarter 2023. GLNG delivered a trailing four-quarter earnings surprise of 24.04%, on average.
The Zacks Consensus Estimate for GLNG’s third-quarter 2023 revenues is pegged at $68.41 million, indicating growth of 0.74% year over year.
Copa Holdings CPA has an Earnings ESP of +4.60% and a Zacks Rank #3. CPA is scheduled to report third-quarter 2023 earnings on Nov 15.
We expect upbeat air-travel demand to have aided CPA’s third-quarter performance. CPA has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 15.13%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Norfolk Southern Corporation (NSC) : Free Stock Analysis Report
Ryder System, Inc. (R) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
Golar LNG Limited (GLNG) : Free Stock Analysis Report
