Norfolk Southern Corporation (NYSE:NSC) reported a solid fourth quarter for 2024, earning $733 million, or $3.23 per share, compared to $527 million, or $2.32 per share, in the same quarter of 2023. This increase was partially driven by $32 million from insurance related to the East Palestine derailment and $40 million from rail line sales [d2f4a9ee]. CEO Mark George expressed optimism for 2025, highlighting positive feedback from customers and regulators, and projecting a 3% revenue growth for the upcoming year [d2f4a9ee].
Despite the positive earnings, Norfolk Southern's total revenue slipped 2% to $3.02 billion, even as the company managed to haul 3% more freight. Notably, coal revenue experienced a decline of 9%, indicating challenges in that sector [d2f4a9ee]. The total costs associated with the East Palestine derailment are expected to reach nearly $2.2 billion, with $751 million covered by insurance, which continues to weigh on the company's financial outlook [d2f4a9ee].
In addition to the earnings report, Norfolk Southern declared a quarterly dividend of $1.35 per share on October 18, 2024, payable on November 20, 2024, to shareholders of record on November 1, 2024. This dividend reflects the company's commitment to returning value to shareholders, having paid dividends for 169 consecutive quarters since 1982 [d2f4a9ee]. The company, operational since 1827, plays a significant role in sustainability by helping to avoid approximately 15 million tons of carbon emissions annually [d2f4a9ee].
The leadership transition at Norfolk Southern has also been notable, with Mark R. George appointed as President and CEO on September 11, 2024, following the termination of Alan H. Shaw [d2f4a9ee]. This change comes as the company navigates its operational strategies and shareholder expectations amidst a competitive freight transportation landscape [d2f4a9ee]. Additionally, regulatory changes may ease restrictions on automated inspections, which could further benefit the company [d2f4a9ee]. Democratic Representative Chris Deluzio has been advocating for stricter regulations in the wake of the derailment, highlighting the ongoing scrutiny faced by Norfolk Southern [d2f4a9ee]. Analysts have varied opinions on the stock, with Stifel maintaining a hold rating and a price target of $233, while TD Cowen raised its target to $253, reflecting optimism about the company's strategic direction [d2f4a9ee].