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Norfolk Southern Shares Fall On Q4 Bottom-Line Miss; Hikes Dividend By 9%

  • Norfolk Southern Corp (NYSE: NSC) reported fourth-quarter FY22 railway operating revenues growth of 13% year-on-year, to $3.24 billion, above the consensus of $3.20 billion.

  • Merchandise revenue increased 12.2% to $1.8 billion, Intermodal rose 9.8%, and Coal grew 28%.

  • Total railway operating expenses rose 19.3% to $2 billion. The operating margin was 36.5%, and operating income for the quarter rose 4.6% to $1.2 billion.

  • The company held $456 million in cash and equivalents as of Dec. 31, 2022. Cash provided by operating activities for the year totaled $4.2 billion.

  • EPS of $3.42 missed the analyst consensus of $3.44.

  • "In the fourth quarter and throughout 2022, Norfolk Southern made significant progress in our financial performance, service improvement, and engagement with our craft team members," said CEO Alan H. Shaw.

  • Norfolk Southern Board approved a 9% increase in its quarterly dividend from $1.24 to $1.35 per share. The dividend is payable on Feb. 21, 2023, to shareholders of record on Feb. 3, 2023.

  • On Jan. 24, 2023, James A. Squires, a member of the Board of Directors and former CEO, notified he will not stand for re-election to the Board at the 2023 annual meeting of shareholders.

  • Price Action: NSC shares traded lower by 5.57% at $241.62 on the last check Wednesday.

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This article originally appeared on Benzinga.com

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