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.