Fourth-quarter profit falls below forecasts
- Norfolk Southern Corp. books $150 million charge for train derailment incident in Ohio
- Stock drops after fourth-quarter profit falls below forecasts
- Net income declines to $527 million, or $2.32 a share, from $790 million, or $3.42 a share, in the year-ago period
- Adjusted earnings per share decline to $2.83 from $3.42, missing FactSet consensus of $2.87
- Revenue slips 5.1% to $3.07 billion, just shy of FactSet consensus of $3.09 billion
- Norfolk Southern Corp. stock has run up 28.4% over the past three months
Shares of Norfolk Southern Corp. dropped 0.8% in premarket trading after the rail operator missed fourth-quarter profit that fell below forecasts. The company reported a net income of $527 million, or $2.32 a share, down from $790 million, or $3.42 a share, in the year-ago period. Adjusted earnings per share declined to $2.83 from $3.42, below the FactSet consensus of $2.87. Revenue slipped 5.1% to $3.07 billion, just shy of the FactSet consensus of $3.09 billion. The stock has run up 28.4% over the past three months.
Public Companies: Norfolk Southern Corp. (NSC)
Private Companies:
Key People:
Factuality Level: 8
Justification: The article provides specific financial information about Norfolk Southern Corp’s fourth-quarter profit, including net income, adjusted earnings per share, and revenue. It also mentions a nonrecurring charge associated with a train derailment. The information is supported by comparisons to the previous year and the FactSet consensus. However, the article does not contain any irrelevant or misleading information, sensationalism, redundancy, or opinion masquerading as fact. It also does not include any digressions, unnecessary background information, or details tangential to the main topic. There is no evidence of misleading information, disinformation, or propaganda, and the news appears to be accurately reported. The reporting is not exaggerated or overly dramatic, and there is no repetitive information. The article does not include any bias or personal perspective presented as universally accepted truth. There are no invalid arguments, logical errors, inconsistencies, fallacies, faulty reasoning, false assumptions, or incorrect conclusions. Overall, the article provides factual information about Norfolk Southern Corp’s financial performance.
Noise Level: 3
Justification: The article provides relevant information about Norfolk Southern Corp’s fourth-quarter profit, including the decline in net income and adjusted earnings per share. It also mentions a nonrecurring charge associated with a train derailment. However, it lacks in-depth analysis, antifragility considerations, and accountability of powerful people. The article stays on topic and supports its claims with data and examples, but it does not provide actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: Shares of Norfolk Southern Corp.
Presence of Extreme Event: Yes
Nature of Extreme Event: Train derailment
Impact Rating of the Extreme Event: Minor
Justification: The article mentions a train derailment in East Palestine, Ohio, which is considered an extreme event. However, the impact rating is classified as minor because there were no reported deaths or injuries, and the financial impact is limited to a nonrecurring charge of $150 million.
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