Norfolk Southern Drops 6.48% on Earnings Miss

Norfolk Southern's stock price dropped 6.48% in pre-market trading on April 25, 2025, reflecting investor concerns over the company's recent financial performance.

Norfolk Southern reported first-quarter earnings of $2.69 per share, falling short of the Zacks Consensus Estimate of $2.72 per share. This marks a -1.10% earnings surprise, contrasting with the previous quarter's 3.05% positive surprise. The company's revenue for the quarter was $2.99 billion, slightly exceeding estimates but down from the previous year's $3 billion.

The company's adjusted operating ratio for the first quarter was 67.9%, with additional costs of $35 million due to storm restoration efforts. Despite these challenges, Norfolk Southern's net income increased to $750.0 million, up from $52.0 million in the same period last year.

Analysts have mixed opinions on the stock. Barclays maintained a Buy rating with a price target of $290.00, while Stifel lowered its price target to $245 from $247. The current consensus EPS estimate for the coming quarter is $3.21 on $3.1 billion in revenues, with a fiscal year estimate of $12.75 on $12.37 billion in revenues.