Earnings Roundup: Anthem shares slide as it faces Medicaid challenge

FILE - This combo of file photos shows signage for health insurers Cigna Corp., and Anthem Inc. Anthem is finally ending its soured, $48 billion bid to buy rival Cigna, but the nation's second-largest health insurer isn't giving up a fight over whether Cigna deserves a termination fee for the scrapped deal. Anthem says Cigna sabotaged the merger agreement and caused "massive damages" for Anthem, which provides Blue Cross-Blue Shield coverage in several states. (AP Photo/File)

Norfolk Southern boosts profit on weaker sales

Norfolk Southern Corp.'s earnings chugged ahead 2% even though the railroad hauled 4% less freight in the second quarter because it was able to raise its shipping rates.

The Norfolk, Virginia-based company said it earned net income of $722 million, or $2.70 per share. That's up from $710 million, or $2.50 per share, a year ago.

The results fell short of the $2.77 per share that seven analysts surveyed by Zacks Investment Research predicted.

The railroad posted revenue of $2.93 billion in the period, which met Street forecasts.

"It was a disappointing earnings quarter," Edward Jones analyst Jeff Windau said. "But they are just getting started with their reforms,"

Norfolk Southern said it implemented a package of reforms earlier this month that are designed to help it operate the railroad on a tighter schedule and move more freight with fewer people.