Market Overview

Rail Stocks Slip After Hours On Profit Warning From Norfolk Southern

Rail Stocks Slip After Hours On Profit Warning From Norfolk Southern
Related NSC
Rail Earnings Season Scorecard
Benzinga's Top Downgrades
T Rowe Price's Best-Performing Stocks (GuruFocus)

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.

Related Link: Analyst: 'Don't Stand In The Way' Of Louisiana-Pacific

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.

Posted-In: News Guidance After-Hours Center Movers Best of Benzinga


Related Articles (CSX + NSC)

View Comments and Join the Discussion!