Why Norfolk Southern Stock Derailed and Shed 12.4% in February
Shares of railroad Norfolk Southern (NYSE: NSC) shed 12.4% in value, according to data provided by S&P Global Market Intelligence, in the month of February. While the COVID-19 coronavirus outbreak triggered panic selling, Norfolk's already facing industry-specific concerns.
Norfolk kicked off February on a strong note after announcing a relatively strong set of fourth-quarter numbers, compared to the info most peers released end-January: It reported 7% lower revenue and a 5% drop in net income year over year, despite macro-headwinds triggered partly by the trade war.
Management expected weak commodity markets and a slump in coal market activity to be offset by stronger merchandise (which includes chemicals, agriculture, automotive, among others) and intermodal volumes. That, however, may not be the case anymore, thanks to the coronavirus.
Source Fool.com
