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ATLANTA - Norfolk Southern Corporation (NYSE:NSC) reported fourth-quarter earnings that exceeded analyst expectations, sending shares up 2.6% in premarket trading on Wednesday.
The railroad operator posted adjusted earnings per share of $3.04 for the quarter, beating the consensus estimate of $3.01. Revenue came in at $3.02 billion, slightly below analysts’ projections of $3.04 billion but up 2% year-over-year when excluding fuel surcharge impacts.
Norfolk Southern’s adjusted operating ratio, a key measure of efficiency, improved to 64.9% in Q4 compared to 68.8% in the same period last year. The company said this 390 basis point improvement was driven by productivity initiatives.
"We closed 2024 with another quarter of solid performance, building on the success of Q3," said President and CEO Mark George. "Our network is running fast; our terminals are more efficient; and service metrics are steady. Our customers are noticing and rewarding us with more business."
For the full year 2024, Norfolk Southern reported adjusted earnings per share of $11.85, up slightly from $11.74 in 2023. Annual revenue was $12.1 billion, relatively flat compared to the previous year.
The company said it met its commitments for second-half and full-year 2024 operating ratio targets. Management noted that productivity initiatives drove results, with additional opportunity expected in 2025.
Norfolk Southern’s quarterly volume grew 3% YoY, indicating improving demand trends. The positive earnings surprise and efficiency gains appear to be fueling investor optimism, as reflected in the stock’s post-earnings rise.
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