Norfolk Southern Plunges After Lowering Q3 Guidance

Shares of Norfolk Southern

are sharply lower on Thursday after the company lowered its third-quarter earnings guidance. The company cited lower coal and merchandise shipping volumes and lower revenues from surcharges. The news has caused the stock to plunge around nine percent during Thursday's trading session. At last check, the stock was trading at $66.13 after opening the day at $68.04. After Thursday's loss, Norfolk Southern shares have now fallen nearly nine percent in 2012. The company now expects earnings per share of $1.18 to $1.25, which is substantially below current Street consensus of $1.64. The railroad operator said that decreased coal and merchandise shipments will likely reduce revenues by about $120 million versus the year ago period.