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Norfolk Southern Q3 Profit Sinks 41%, Still Beats View (NSC)

By Dividend.com Staff
October 28th, 2009

norfolk-southern-q3-profit-sinks-41-still-beats-view-nsc

Railroad operator Norfolk Southern Corp. (NSC) said late Tuesday that its third quarter profit plunged 41% from last year, hurt by lower shipments of a wide variety of goods amid the economic recession.

The Norfolk, Virginia-based company posted third quarter net income of $303 million, or 81 cents per share, down from $520 million, or $1.37 per share, in the year-ago period.

Revenue plunged 29% to $2.06 billion, while shipping volume fell 20% from last year.

Norfolk Southern shares rose $3.07, or +6.7%, in morning trading Wednesday.

The Bottom Line
The company has a 2.95% dividend yield, based on last night’s closing stock price of $46.05. The stock has technical support in the $40-$41 price area. If the shares can firm up, we see overhead resistance around the $50 price level.

Norfolk Southern Corp. (NSC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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Disclaimer: Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. The author is not registered as an investment adviser. The author may or may not hold positions in the securities mentioned in this article or video. The author relies upon the "publisher's exclusion" from the definition of "investment adviser" as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws.