Norfolk Southern to Report Q4 Earnings: What's in Store for the Stock?

Norfolk Southern Corporation (NSC) is scheduled to report fourth-quarter 2025 results on Jan. 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 1.58%. 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 Q4 PerformanceE-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 might have hurt NSC’s prospects in the to-be-reported quarter.The Zacks Consensus Estimate for NSC’s fourth-quarter 2025 earnings has been revised downward by 3.47% in the past 60 days to 2.78 per share. Moreover, the consensus mark implies an 8.55% downside from the year-ago actual. Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for NSC’sfourth-quarter 2025 revenues is pegged at $3.01 billion, indicating a mere 0.4% growth year over year.The Zacks Consensus Estimate for fourth-quarter Merchandise revenues is pegged at $1.91 billion, indicating a 3.7% increase from the year-ago reported figure. The Zacks Consensus Estimate for fourth-quarter Intermodal revenues is pegged at $761 million, indicating a 3.9% decline from the year-ago reported figure. The Zacks Consensus Estimate for fourth-quarter Coal revenues is pegged at $371 million, indicating a 4.8% decline from the year-ago reported figure.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.Norfolk Southern has an Earnings ESP of -0.16% and a Zacks Rank #5 (Strong Sell) at present.Norfolk Southern Corporation Price and EPS Surprise Norfolk Southern Corporation price-eps-surprise | Norfolk Southern Corporation QuoteHighlights of NSC’s Q3 EarningsNSC's third-quarter 2025 earnings (excluding 14 cents from non-recurring items) of $3.30 per share beat the Zacks Consensus Estimate of $3.18 and increased 1.5% year over year.Railway operating revenues were $3.10 billion in the third quarter, beating the Zacks Consensus Estimate of $3.08 billion. The top line increased 2% year over year, on flat volumes. Total revenue per unit surged 2% 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 National Railway CNI has an Earnings ESP of +0.44% and a Zacks Rank #3 at present. The company is scheduled to report fourth-quarter 2025 results on Jan. 30.The Zacks Consensus Estimate for fourth-quarter earnings has been revised upward by 1.43% at $1.42 per share over the past 60 days. CNI’s earnings beat the Zacks Consensus Estimate in two of the preceding four quarters and missed twice in the remaining, the average miss was 0.1%. United Parcel Service UPS has an Earnings ESP of +1.00% and a Zacks Rank #3 at present.  UPS is scheduled to report fourth-quarter 2025 earnings on Jan. 27. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for fourth-quarter 2025 earnings has been revised 2.29% upward over the past 60 days. UPS’ earnings beat the Zacks Consensus Estimate in three of the preceding four quarters and missed in the remaining one, the average beat being 11.2%.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.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 Canadian National Railway Company (CNI): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report United Parcel Service, Inc. (UPS): 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