Kansas City Southern reported first-quarter 2018 earnings per share (on an adjusted basis) of $1.30, falling short of the Zacks Consensus Estimate of $1.35. Earnings, however, increased 11.1% on a year-over-year basis.

How Was the Estimate Revision Trend?

Investors should note that the earnings estimate revisions for Kansas City Southern depicted a gloomy picture prior to the earnings release. The stock had seen the Zacks Consensus Estimate for first-quarter earnings being revised 4.3% downward over the last 30 days

However, Kansas City Southern has an impressive earnings surprise history. Prior to the earnings miss in the first-quarter, the company delivered positive surprises in three of the past four quarters. The average earnings beat was 2.3%.

Kansas City Southern Price and EPS Surprise

 

Kansas City Southern Price and EPS Surprise | Kansas City Southern Quote

Revenues Lower Than Expected

Kansas City Southern recorded revenues of $638.6 million, which fell short of the Zacks Consensus Estimate of $643.5 million. However, it compared favorably with the year-ago number of $609.5 million.

Key Q1 Statistics: Kansas City Southern reported operating ratio of 65.8% in the reported quarter, compared with 65.4% a year-ago. Operating income improved 4% to $219 million. Overall, carload volumes improved 1% in the quarter.

Zacks Rank: Currently, Kansas City Southern carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on this Kansas City Southern earnings report later!

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>