Norfolk Southern Posts Record Q1 Operating Ratio -

Norfolk Southern Posts Record Q1 Operating Ratio

Apr 26, 2017Jeremy ParkinsonFinance0

Norfolk Southern Corp. (NYSE: NSC) early Wednesday posted better than expected first quarter earnings results, amid a record Q1 operating ratio and railway income.

Written by StockNews.com

The Norfolk, VA-based railroad operator reported Q1:

earnings per share (EPS) of $1.48, which was $0.12 better than the Wall Street consensus estimate of $1.36,

revenues rose 6.4% from last year to $2.58 billion, also topping analysts’ view for $2.55 billion…

operating ratio, or operating expenses as a percentage of revenues, was 70.0% in the latest period which was an all-time record for a first-quarter.

Income from railway operations was also a first-quarter record, growing 7% from last year to $773 million.

James A. Squires, Norfolk Southern chairman, president and CEO, commented via press release:

“Norfolk Southern’s record results for the first quarter demonstrate the efficacy of our strategic plan, under which we are enhancing our service quality and network performance while driving significant efficiency improvements.

Our focus on providing a superior service product has positioned us for growth and, coupled with our cost discipline, has contributed to a solid start to the year.

Our strategy provides a strong foundation for growth at low incremental costs, a powerful formula for enhanced shareholder value.”

Norfolk Southern Corp. shares were unchanged in premarket trading Wednesday. Year-to-date, NSC has gained 8.62%, versus a 7.18% rise in the benchmark S&P 500 index during the same period.

NSC currently has a StockNews.com POWR Rating of B (Buy), and is ranked #7 of 15 stocks in the Railroads category.