NEW YORK (TheStreet) -- Norfolk SouthernCorp. (NSC) - Get Report stock is up by 1.67% to $70.03 in early-morning trading on Wednesday, after the company reported its 2015 fourth quarter earnings results and announced a strategic plan to reduce costs.
Before the market open on Wednesday, the railroad holding company reported earnings of $1.20 per share, lower than analysts' projections for earnings of $1.23 per share.
Revenue declined by 12% year-over-year to $2.5 billion, which missed analysts' forecasts for revenue of $2.57 billion. Traffic volume fell by 6% during the quarter due to lower coal volumes and lower commodity prices, Norfolk Southern said in a statement.
Additionally, the company said it was initiating a strategic plan to reduce costs by $650 million annually by 2020.
"This plan will enable us to achieve significant annual expense savings beginning in 2016 without compromising the company's ability to capitalize on volume and revenue growth opportunities," CEO James Squires said in a statement. "We are making progress despite a challenging operating environment, including successfully restoring our rail service to previous high levels, realigning resources, and completing strategic capacity investments to improve efficiency and productivity."
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "buy" with a ratings score of B. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: NSC