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It's Showtime for Norfolk Southern

By Seth Jayson - Updated Apr 10, 2017 at 1:49PM

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Checking expectations

Norfolk Southern (NYSE: NSC) is expected to report Q1 earnings on April 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Norfolk Southern's revenues will wither -0.6% and EPS will decrease -4.9%.

The average estimate for revenue is $2.77 billion. On the bottom line, the average EPS estimate is $1.17.

Revenue details
Last quarter, Norfolk Southern chalked up revenue of $2.68 billion. GAAP reported sales were 4.0% lower than the prior-year quarter's $2.80 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.30. GAAP EPS of $1.29 for Q4 were 9.2% lower than the prior-year quarter's $1.42 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 35.3%, 120 basis points worse than the prior-year quarter. Operating margin was 26.2%, 210 basis points worse than the prior-year quarter. Net margin was 15.4%, 180 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $11.34 billion. The average EPS estimate is $5.57.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,229 members out of 1,258 rating the stock outperform, and 29 members rating it underperform. Among 343 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 338 give Norfolk Southern a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Norfolk Southern is outperform, with an average price target of $73.43.

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Stocks Mentioned

Norfolk Southern Corporation Stock Quote
Norfolk Southern Corporation
$237.57 (-5.61%) $-14.13

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