Norfolk Southern's Earnings Beat Highlights Operational Improvements, But Balance Sheet Concerns Persist.

Norfolk Southern (NSC) reported net profit margins of 24.2%, up from 19.8% a year earlier, and earnings grew 22.6% over the past year. The company's recent margin expansion supports the consensus narrative that operational changes are improving earnings quality. However, some analysts flag potential margin pressure from weather-related costs. The share price trades close to the analyst target, reinforcing the argument that current pricing reflects consensus estimates. Despite this, the consensus view sees the share price as reasonable, assuming revenue grows as forecast and margins remain strong.