Upcoming AWS Coverage on Canadian National Railway Post-Earnings Results
LONDON, UK / ACCESSWIRE / February 2, 2017 / Active Wall St. announces its post-earnings coverage on Norfolk Southern Corp. (NYSE: NSC). The Company disclosed its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) on January 25, 2017. The Norfolk, Virginia-based Company's diluted EPS rose 18% y-o-y; beating market consensus estimates. Register with us now for your free membership at:
One of Norfolk Southern's competitors within the Railroads space, Canadian National Railway Co. (NYSE: CNI), reported on January 24, 2017, its financial and operating results for Q4 and year ended December 31, 2016. AWS will be initiating a research report on Canadian National Railway in the coming days.
Today, AWS is promoting its earnings coverage on NSC; touching on CNI. Get our free coverage by signing up to:
In Q4 FY16, Norfolk Southern reported total railway operating revenues of $2.49 billion compared to $2.52 billion recorded at the end of Q4 FY15. Revenue numbers for Q4 FY16 marginally lagged behind the market consensus estimates of $2.50 million. The Company attributed this fall in total railway operating revenues to lower merchandise and coal traffic volume as well as reduced fuel surcharges, which was partially offset by intermodal volume growth, thus eclipsing the effects of the 2015 Triple Crown restructuring.
The railroad Company's net income grew to $416 million, or $1.42 per diluted share in Q4 FY16, from $361 million, or $1.20 per diluted share, in Q4 FY15. Wall Street had expected the Company to report net income of $1.38 per diluted share.
For FY16, Norfolk Southern's total railway operating revenues came in at $9.89 billion compared to $10.51 billion in the previous year's same period. The 6% decline in revenues was driven by a 3% volume decline due to reductions in energy-related markets and the Triple Crown restructuring, as well as reduced fuel surcharges. The Company reported net income of $1.67 billion, or $5.62 per diluted share, in FY16 versus $1.56 billion, or $5.10 per diluted share, in FY15.
For the reported quarter, the Company's total railway operating expenses were $1.73 billion compared to $1.88 billion in Q4 FY15. The Company's income from railway operations for Q4 FY16 came in at $761 million compared to $642 million in Q4 FY15. Norfolk Southern's operating ratio improved 5.10 points to 69.4% in Q4 FY16 from 74.5% in the year ago same quarter. The railway units grew during Q4 FY16 to 1.84 million from 1.80 million in Q4 FY15. Revenues ton miles (RTM) totaled 48.3 billion in Q4 FY16 compared to 48.1 billion in the prior year's comparable quarter. Furthermore, revenue per thousand RTMs came in at $51.59 versus $52.31 in Q4 FY15.
Norfolk Southern's Merchandise railway operating revenues fell to $1.50 billion in Q4 FY16 from $1.52 billion in Q4 FY15. The segment's railway units also declined in Q4 FY16 to 604.8 thousand from 620.7 thousand in the previous year's corresponding quarter. For Q4 FY16, the segment's RTM was 28.3 billion compared to 28.8 billion in Q4 FY15. Additionally, the segment's revenue per thousand RTMs stood at $53.13 in Q4 FY16 compared to $52.70 in last in Q4 FY15.
Intermodal railway operating revenue rose to $583 million in Q4 FY16 from $563 million in Q4 FY15. The segment's railway units also grew to 996.0 thousand in Q4 FY16 from 934.9 thousand in the prior year's same quarter. In Q4 FY16, the segment's RTM improved to 10.7 billion from 9.8 billion in Q4 FY15. Moreover, the segment's revenue per thousand RTMs came in at $54.56 in Q4 FY16 compared to $57.50 in Q4 FY15.
The Company's coal railway's operating revenue declined to $403 million in Q4 FY16 from $433 million in Q4 FY15. During the reported period, railway units also fell to 239.1 thousand from 247.8 thousand in Q4 FY15. The segment's RTM for Q4 FY16 was 9.3 billion compared to 9.5 billion in Q4 FY15. Furthermore, the segment's revenue per thousand RTMs stood at $43.48 in Q4 FY16 compared to $45.76 in Q4 FY15.
Cash Flow & Balance Sheet
During FY16, net cash provided by operating activities totaled $3.03 billion compared to $2.91 billion in the prior year's same period. At the close of books on December 31, 2016, Norfolk Southern had $956 million as cash and cash equivalents compared to $1.10 billion at the close of books on December 31, 2015. Furthermore, the company reported long-term debt of $9.56 billion as on December 31, 2016, compared to $9.39 billion as on December 31, 2015.
Dividend and Share Repurchase
In a separate press release on January 24, 2017, Norfolk Southern's Board of Directors raised the regular quarterly dividend by 3%, or $0.02 per share, to $0.61 per share. The dividend is payable on March 10, 2017, to stockholders of record at the close of business on February 03, 2017.
In FY16, the Company repurchased and retired 9.2 million of its common stock for $803 million under its 50 million shares stock repurchase program authorized on August 01, 2012 and valid thorough December 31, 2017. Furthermore, the Company has 14.7 million shares remaining to be repurchased under the same authority as on December 31, 2016.
On Wednesday, the stock closed the trading session at $119.93, jumping 2.10% from its previous closing price of $117.46. A total volume of 2.91 million shares have exchanged hands, which was higher than the 3-month average volume of 2.07 million shares. Norfolk Southern's stock price advanced 10.97% in the last month, 29.79% in the past three months, and 39.40% in the previous six months. Moreover, the stock surged 10.97% since the start of the year. The stock is trading at a PE ratio of 22.21 and has a dividend yield of 2.03%.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email email@example.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active Wall Street