Summary Highlights:
- Norfolk Southern (NSC, Financial) surpasses earnings expectations with a notable adjusted profit increase.
- Operating expenses see a significant reduction due to substantial insurance benefits.
- Market analysts predict an optimistic upside potential for NSC stock.
Norfolk Southern's Impressive Earnings Performance
Norfolk Southern (NSC) recently posted an impressive first-quarter financial performance, exceeding analysts' expectations. The company reported an adjusted profit of $2.69 per share, a significant rise from last year's $2.49. This achievement was bolstered by a substantial decrease in operating expenses, down 34%, thanks to a $185 million insurance adjustment related to the Ohio derailment. As a result, even with stable revenues, NSC shares saw a notable uptick of nearly 3%.
Wall Street Analysts Forecast
Wall Street analysts have set optimistic projections for Norfolk Southern Corp (NSC, Financial) over the next year. According to the price targets from 23 analysts, the average target price stands at $263.24, with estimates ranging from a high of $290.00 to a low of $174.00. This average target forecasts an upside of 19.65% from the current price of $220.00. For a comprehensive view, investors can explore the Norfolk Southern Corp (NSC) Forecast page.
Brokerage Recommendations and GF Value Estimate
Norfolk Southern Corp. (NSC, Financial) currently enjoys an "Outperform" rating, based on the consensus recommendation from 28 brokerage firms, which stands at an average of 2.3 on a scale where 1 indicates a Strong Buy and 5 indicates Sell.
GuruFocus estimates a one-year GF Value for Norfolk Southern Corp at $254.41. This suggests a potential upside of 15.64% from the current price of $220. The GF Value is a calculated fair value estimate based on historical trading multiples, past business growth, and future performance projections. For more detailed insights, you can visit the Norfolk Southern Corp (NSC, Financial) Summary page.
