Earnings Preview: Norfolk Southern's EPS, Revenue Expected to Rise

Norfolk Southern (NYSE: NSC) announces its next round of earnings this Wednesday, October 26, 2011. Here is Benzinga's everything-that-matters guide for this Wednesday's third quarter earnings announcement.

Earnings and Revenue:

Analysts are looking ahead to a positive EPS of $1.42/share and revenues of $2.86 billion. Norfolk Southern's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of $1.19/share on revenues of $2.46 billion. Can Norfolk Southern manage the estimated 19.3% rise in EPS and 16.3% increase in revenues from the year-ago quarter as analysts are predicting? We'll have to wait until Wednesday to find out.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

As of October 20, 2011, Norfolk Southern's current share price was $68.79. Since January 1st, shares of Norfolk Southern have given investors a return of 11.5%. For a full 12 months, the return has risen by 10.8%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Norfolk Southern is a Moderate Buy. The strength of this rating has crept upwards over the past three months.

Competitors:

Wondering how some of the other industrials companies are doing? Here are a few of Norfolk Southern's peers in that sector.

• Canadian National Railway (USA (NYSE: CNI): Hold with a $1.33 recent quarter EPS
• Canadian Pacific Railway Limited (USA (NYSE: CP): Hold with a $0.71 recent quarter EPS
• CSX (NYSE: CSX): Moderate Buy with a $0.43 recent quarter EPS
• Genesee & Wyoming (NYSE: GWR): Moderate Buy with a $0.71 recent quarter EPS

The transportation-rail company's industry has seen price/earnings growth of 1% during the current fiscal year.

Finally, a description of the company's main areas of operation: Norfolk Southern is engaged in rail transportation of raw materials, intermediate products, and finished goods.

Take Action:

There is your peek into Norfolk Southern's upcoming earnings numbers, including some competitors to watch around the time of the announcement. Check back in with us after the announcement for a full recap. In the meantime, here are some links to explore today.

• To see up-to-date news on Norfolk Southern, click here
• To see other trading ideas, click here
• To see other company earnings recaps, click here