Norfolk Southern to Report Q2 Earnings: What's in Store for the Stock?

Norfolk Southern Corporation (NSC) is scheduled to report second-quarter 2025 results on July 29, before market open.Norfolk Southern has an encouraging earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average beat of 3.54%.Image Source: Zacks Investment ResearchLet’s see how things have shaped up for Norfolk Southern this earnings season.Factors Likely to Have Influenced NSC's Q2 PerformanceThe Zacks Consensus Estimate for NSC’s second-quarter 2025 earnings has been revised upward by 0.62% in the past 60 days to $3.26 per share. Moreover, the consensus mark implies a 6.54% upside from the year-ago actual.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for NSC’ssecond-quarter 2025 revenues is pegged at $3.13 billion, indicating 2.95% growth year over year.The Zacks Consensus Estimate for second-quarter Merchandise revenues is pegged at $1.96 billion, indicating 3.2% upside from the year-ago reported figure as well as above our estimate of $1.94 billion. In the Merchandise segment, gains in chemicals and agriculture businesses were expected to have been offset by weakness in the metals and construction segment.The Zacks Consensus Estimate for second-quarter Intermodal revenues is pegged at $765 million, indicating 3.1% growth from the year-ago reported figure but below our estimate of $783.2 million. Intermodal revenues are expected to have been aided by strength across both domestic and international markets, coupled with stabilization in truck pricing.The Zacks Consensus Estimate for second-quarter Coal revenues is pegged at $396 million, indicating a 0.5% decline from the year-ago reported figure and below our estimate of $409.8 million. In the coal segment, lower export coal prices are likely to be partially offset by strong electricity demand and support from higher natural gas prices.E-commerce demand has been driving shipment volumes for Norfolk Southern and is likely to boost results. The company utilizes its Precision Scheduled Railroading operating plan to cut costs and improve service quality, ensuring efficient use of assets. NSC’s robust free cash flow generation also enables it to maintain steady, shareholder-friendly initiatives.On the flip side, softness in the freight market and volumes is a negative for NSC and is likely to have hurt its performance in the to-be-reported quarter. Additionally, inflationary pressure, high interest rates, tariff-related uncertainties, weak freight demand and supply-chain disruptions also act as other headwinds for NSC’s prospects.What Our Model Says About NSCOur proven model does not conclusively predict an earnings beat for Norfolk Southern this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.NSC has an Earnings ESP of +0.04% and a Zacks Rank #4 (Sell).Norfolk Southern Corporation Price and EPS Surprise Norfolk Southern Corporation price-eps-surprise | Norfolk Southern Corporation QuoteHighlights of NSC's Q1 EarningsNorfolk Southern's first-quarter 2025 earnings of $2.69 per share (excluding 62 cents from non-recurring items) missed the Zacks Consensus Estimate of $2.72. The bottom line, however, increased 8% year over year, owing to lower costs. Railway operating revenues were $2.99 billion in the quarter under review, marginally ahead of the Zacks Consensus Estimate. The top line decreased 0.4% year over year.Stocks to ConsiderHere are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.Canadian Pacific Kansas City Limited (CP) has an Earnings ESP of +0.03% and a Zacks Rank #3 at present. CP is scheduled to report second-quarter 2025 earnings on July 30. You can seethe complete list of today’s Zacks #1 Rank stocks here.CP’s earnings have surpassed the Zacks Consensus Estimate in two of the last four quarters (missed the mark in one quarter and matched the mark in the remaining quarter), the average beat being 2.11%. The Zacks Consensus Estimate for CP’s second-quarter 2025 earnings has remained unchanged at 82 cents per share in the past 60 days. CP’s second-quarter 2025 earnings are expected to grow 6.5% year over year. JetBlue Airways Corporation (JBLU) has an Earnings ESP of +0.54% and a Zacks Rank #3 at present. JBLU is scheduled to report second-quarter 2025 earnings on July 29. JBLU’s second-quarter 2025 earnings are expected to decline more than 100% year over year. The Zacks Consensus Estimate for JBLU’s second-quarter 2025 earnings has been revised upward by 13.89% in the past 60 days. JBLU’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 58.32%.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report Canadian Pacific Kansas City Limited (CP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks