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Actionable news in NSC: NORFOLK SOUTHERN Corp,

Avoid Norfolk Southern

Summary

Norfolk Southern reports quarterly earnings after-hours.

The company's carloads and average selling price are in decline. Its outsized exposure to coal will likely amplify that decline.

NSC has embarked on a cost-cutting initiative to improve its 37% EBITDA margin. Until revenue declines abate investors should avoid the stock.

Norfolk Southern (NYSE:NSC) is set to report Q1 earnings after hours today. Analysts expect revenue of $2.39 billion and eps of $0.97. The revenue estimate implies a 5.1% decline versus the company's Q4 2015 revenue of $2.52 billion. Investors should focus on the following key items:

Coal Exposure

Coal has become a dirty word in the railroad industry. Demand for coal has fallen due to clean energy standards adopted by the government and a shift...


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