Rail Stocks Slip After Hours On Profit Warning From Norfolk Southern
U.S. rail stocks slipped in the extended session Monday after Norfolk Southern Corp. (NYSE: NSC) warned that lighter shipments of coal will result in a disappointing first quarter.
The Norfolk, Virginia-based company changed hands recently at $99.08, off 5.5 percent. Full results for the first quarter are expected April 29.
The company said first-quarter earnings will fall 15 percent from a year earlier to $1 a share while revenue will be off 5 percent. Wall Street expected earnings of $1.26 a share.
Reduced fuel surcharges as well as lower coal volumes, and a lower average revenue per unit related to the mix of business hurt revenue.
Following the weather-related challenges of the first quarter, volumes are expected to rebound in the second quarter, with the exception of coal, the company said.
In Monday's extended session, CSX Corporation (NYSE: CSX) declined 2.9 percent to $32.11 recently. The company is slated to post results Wednesday.
Union Pacific Corporation (NYSE: UNP) dropped 1.7 percent to $106.80 and is expected to report quarterly earnings April 23.
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