: Norfolk Southern stock gains after earnings, excluding charge of nearly $390 million related to train derailment, beats expectations
Shares of Norfolk Southern Corp. NSC edged up 0.2% in premarket trading Wednesday, after the railroad operator reported first-quarter adjusted profit and revenue that topped expectations, as strength in the company’s merchandise and coal business offset weakness in intermodal. Net income fell to $466 million, or $2.04 a share, from $703 million, or $2.93 a share, in the year-ago period. Excluding nonrecurring items, such as an initial $387 million charge resulting from the train derailment in East Palestine, Ohio, adjusted earnings per share rose to $3.32 from $2.93 and beat the FactSet consensus of $3.15. Revenue grew 7.4% to $3.13 billion, just above the FactSet consensus of $3.10 billion, as merchandise revenue increased 12.3% to $1.88 billion and coal revenue rose 13.1% to $440 million while intermodal revenue fell 4.7% to $814 million. “”From the beginning, we have been guided by one principle: We are going to do whatever it takes to make it right for East Palestine and the surrounding areas,” said Chief Executive Officer Alan Shaw. The stock has dropped 16.0% year to date through Tuesday, while the Dow Jones Transportation Average DJT has gained 4.1% and the Dow Jones Industrial Average DJIA has tacked on 1.2%.
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