NS President/CEO Moorman to succeed Goode as chairman (1/25/2006) - RailPrime | ProgressiveRailroading

UBS reiterated a Neutral rating on Norfolk Southern (NYSE:NSC) with a $363 price target. The company reported Q3 EPS of $3.62, beating estimates of $3.47, driven by revenue growth and higher fuel surcharges. Revenue reached $3.5B, exceeding projections. Despite the beat, UBS and StoneX maintain Neutral/Hold ratings, citing overvaluation.

Knight-Swift's aggressive strategy, including shedding unprofitable freight, led to an 89 operating ratio, outperforming J.B. Hunt's more conservative approach in a lukewarm freight market. Experts attribute Knight-Swift's success to its entrepreneurial culture, while J.B. Hunt's focus on dedicated and contract business limits its ability to quickly adjust to market changes. Norfolk Southern shares traded above Union Pacific's offer price, reflecting market expectations of a merger approval.

StoneX maintained a Hold rating on Norfolk Southern (NSC) after its Q3 earnings beat estimates, with adjusted EPS of $3.62 vs. $3.47 expected. Revenue also surpassed forecasts, driven by higher volumes and pricing. The company's P/E ratio is 27.5, and it is considered overvalued by InvestingPro. Management noted resilient consumer activity but warned of potential pressure from elevated energy prices.

TD Cowen kept a Buy rating on Norfolk Southern (NSC) with a $379 price target, suggesting a 12.1% upside. The company reported strong Q3 results, with adjusted EPS of $3.62, beating estimates. It also showed stable demand in key markets, like chemicals and metals, despite diesel fuel headwinds.

Union Pacific reported 6% higher freight volume and 1% fewer employees in Q3, with revenue up 15% to $7.2B and EPS up 16% to $3.49. Productivity improved 5%, and operating costs rose 4%. The company awaits regulatory approval for its merger with Norfolk Southern, targeting a 2027 close. CEO Jim Vena noted labor cost increases and hiring plans.

CSX, Union Pacific, and Norfolk Southern reported record Q3 revenue due to high diesel prices shifting freight to rail. CSX saw $4B revenue (+12% YoY), Union Pacific $7.2B (+15%), and Norfolk Southern $3.5B (+14%). Intermodal volume grew significantly, but pricing benefits await 2027 contract resets. Fuel surcharges drove revenue growth, with diesel prices nearing all-time highs.