(The Associated Press issued the following on December 7.)
NEW YORK — A Lehman Brothers analyst on Thursday trimmed fourth-quarter estimates for Norfolk Southern Corp. because of lower freight volumes, but said robust pricing would continue to support the industry’s earnings going forward.
Lehman’s Garrett Chase drew down his fourth-quarter earnings expectations on Norfolk Southern to 99 cents per share from $1 per share. Chase revised his full-year forecast to $3.61 per share from $3.62 per share.
Analysts polled by Thomson Financial forecast a fourth-quarter profit of 98 cents per share and full-year earnings of $3.58 per share.
“While we have reduced our more optimistic forecasts modestly, we believe firm pricing will continue to drive good earnings and margins for the group,” Chase said in an accompanying note on the industry.
Chase kept his “Underweight” rating and $54 price target on Norfolk Southern.
Shares of the Norfolk, Va.-based railroad rose 37 cents to $51.08 in afternoon trading on the New York Stock Exchange.