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Norfolk Southern Registers 16% Top-Line Growth In Q2

Benzinga · 07/27/2022 15:48
  • Norfolk Southern Corp (NYSE:NSC) reported second-quarter FY22 railway operating revenue growth of 16% year-over-year to $3.25 billion, beating the consensus of $3.13 billion.
  • EPS improved to $3.45 from $3.28 in 2Q21, below the consensus of $3.47.
  • Revenue was driven by a 20% increase in revenue per unit.
  • Sales by segments: Merchandise $1.85 billion (+10% Y/Y), Intermodal $972 million (+21% Y/Y) and Coal $425 million (+34% Y/Y).
  • Railway operating expenses increased by 21% Y/Y to $2 billion due to higher fuel prices, lower property sales, and increased costs from inflation and service challenges.
  • Income from railway operations increased by 9% Y/Y to $1.27 billion, and the margin contracted 260 basis points to 39.1%.
  • The railway operating ratio was 60.9%, compared to 58.3% in 2Q21.
  • Norfolk Southern generated operating cash flow year-to-date of $2.01 billion, compared to $2.1 billion a year ago.
  • FY22 Outlook: Norfolk Southern expects revenue to grow by ~12% Y/Y and 50-100 bps improvement in operating ratio.
  • Price Action: NSC shares are trading lower by 0.50% at $243.39 on the last check Wednesday.