Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com - Benchmark has reiterated its Hold rating on Norfolk Southern (NYSE:NSC) following the company’s third-quarter earnings report. According to InvestingPro data, the company currently trades at a PEG ratio of 0.22, suggesting an attractive valuation relative to its growth prospects.
Norfolk Southern reported adjusted earnings per share of $3.30 for the third quarter, exceeding the consensus estimate of $3.19 and Benchmark’s projection of $3.18, primarily due to lower expenses and a significant land sale.
The railroad company has increased its productivity savings target for 2025 to approximately $200 million year-over-year, up from its previous guidance of $175 million or more, as operations continue to improve.
Despite operational improvements, Norfolk Southern is maintaining a cautious volume outlook for the remainder of the year, citing macroeconomic uncertainty and increased competitive pressure following its merger announcement, which is expected to impact intermodal volumes and create headwinds for revenue and operating ratio in the coming quarters.
The company believes regulatory approval for the merger will face challenges as it will be the first to test the Surface Transportation Board’s more stringent 2001 merger rules, though favorable commentary from the administration suggests this could be an opportune time for the attempt.
In other recent news, Norfolk Southern Corporation reported its fiscal third-quarter results for 2025, surpassing earnings per share (EPS) expectations but falling slightly short on revenue forecasts. The company achieved an EPS of $3.30, exceeding the forecasted $3.20, representing a positive surprise for investors. However, revenue came in at $3.1 billion, just under the anticipated $3.11 billion. Despite the earnings beat, the mixed results have led to cautious reactions from investors. The earnings release reflects ongoing challenges and opportunities for Norfolk Southern as it navigates the current economic landscape. The financial outcomes are crucial for stakeholders who closely monitor these metrics. These recent developments highlight the importance of both earnings and revenue figures in assessing company performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.