Norfolk Southern 4Q Profit Tops Views -- Earnings Review

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Shares of General Dynamic Corp. (GD) rose 1.2% to $209.87 premarket on light volume after reporting fourth-quarter earnings. Here's what you need to know:

EARNINGS: The defense company said quarterly earnings were dented by changes in the tax policy. Excluding that impact, earnings jumped 32% to $2.50 per share, ahead of consensus of $2.38 per share.

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REVENUE: Sales rose 8.1% to $8.28 billion missing analysts estimates of $8.41 billion. Revenue growth was lead by the General Dynamics combat systems segment where sales climbed 7.6%. Sales in its information systems and technology business fell 2.8%.

TAX WATCH: General Dynamics recorded a $119 one-time charge related to a write down in deferred tax assets due to the recently enacted tax legislation.

Write to Imani Moise at imani.moise@wsj.com

Norfolk Southern Corp. (NSC) reported fourth-quarter earnings before the opening bell Wednesday. Here's what you need to know:

EARNINGS: Excluding a one-time benefit from the new tax law, the railroad posted higher-than-expected earnings of $1.69 a share, up from $1.42 a year earlier. Analysts had modeled earnings of $1.57 a share.

REVENUE: Sales rose about 7% to $2.67 billion, roughly in line with expectations. The company said overall volumes were up 5%, reflecting growth in all three major categories of intermodal, coal and merchandise.

TAX WATCH: Norfolk Southern, like most major railroads, got a fourth-quarter boost from the recent enactment of new tax legislation. The changes lifted its bottom line by about $3.48 billion.

DIVIDEND: The company on Tuesday said it raised its quarterly dividend by 18% to 72 cents from 61 cents.

SHARES: The stock, inactive during premarket trade, has risen 30% over the past 12 months.

Write to Imani Moise at imani.moise@wsj.com

(END) Dow Jones Newswires

January 24, 2018 08:41 ET (13:41 GMT)

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