What Norfolk Southern's Earnings Mean for Mutual Fund Investors (NSC)
Shauna O'Brien Jan 26, 2015
Inside NSC’s Earnings
The company reported earnings of $511 million, down from $513 million last year. On a per share basis, earnings remained flat at $1.64. Analysts expected to see EPS of $1.63.
Revenue was $2.87 billion, compared to $2.88 billion last year. Analysts expected to see $2.94 billion in revenue.
Better Railroad Plays for Investors
From a valuation standpoint, NSC is trading at 15x 2015 earnings estimates and is expected to see a 3% rise in sales. The company also boosted its dividend and is now yielding at about 2.20%. While its valuation and dividend yield are decent, investors interested in a railroad company may be better off investing in one of NSC’s peers.
Mutual Funds to Watch
|VTSMX||Vanguard Total Stock Market||1.68%|
|VFINX||Vanguard 500 Index||1.08%|
|SGROX||Wells Fargo Advantage Growth||0.48%|
The Bottom Line
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