Norfolk Southern Beats Q2 Estimates, Raises FY21 Operating Ratio Outlook


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


  • Norfolk Southern Corp. (NYSE:NSCreported second-quarter railway operating revenue growth of 34% year-over-year to $2.8 billion, reflecting a 25% increase in volume and a 7% increase in revenue per unit to $1,542, beats the consensus estimate of $2.74 billion.
  • Sales by segments: Merchandise $1.68 billion (+28.5% Y/Y), Intermodal $801 million (+40.8% Y/Y) and Coal $318 million (+52.2% Y/Y).
  • Total operating expense increased by 10.6% Y/Y to $1.63 billion.
  • EPS improved to $3.28 from $1.53 in 2Q20, beating the consensus of $2.94.
  • The operating income increased by 91% Y/Y to $1.17 billion, and the margin expanded by 1,244 bps to 41.7%.
  • Railway operating ratio was 58.3% compared to 70.7% in 2Q20.
  • Norfolk Southern generated a YTD operating cash flow of $2.1 billion, compared to $1.76 billion a year ago. Free cash flow was at $1.47 billion vs. $1.02 billion a year ago.
  • The company repurchased and retired 5.7 million shares of common stock under the stock repurchase program during the first six months for $1.5 billion.
  • FY21 Outlook: The company expects an increase in revenue YoY of ~12% (up from the prior expectation of ~9%). Operating ratio expected YoY improvement 400bps – 440bps (prior >300bps).
  • Price Action: NSC shares closed lower by 0.89% at $262.93 on Tuesday.

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

Posted In: EarningsNewsGuidanceBriefs