Norfolk Southern Q3 Earnings Rise Amid Takeover Attempt

Norfolk Southern (NSC) reported a significant increase in profits for the third quarter, earning $4.85 per share compared to $2.10 per share the previous year, largely boosted by a $287 million gain from the sale of rail lines and insurance payouts from last year's East Palestine derailment. Excluding these one-time items, the adjusted earnings were $3.25 per share, surpassing analysts' expectations of $3.11 per share. Despite these earnings, the company's revenue of $3.05 billion slightly missed Wall Street’s expectations, although it represents a 2.7% increase from last year. The railroad's operating margin improved significantly to 52.3%, driven by strategic operational efficiencies. The new CEO, Mark George, who previously served as CFO, is not expected to make major strategic changes, focusing instead on maintaining a resilient, reliable service network. Norfolk Southern has been under scrutiny following the East Palestine incident and has also faced a takeover attempt from Ancora Holdings earlier this year.