Kansas City Southern’s third-quarter 2017 earnings (on an adjusted basis) of $1.35 surpassed the Zacks Consensus Estimate of $1.32 per share. The bottom line also expanded 20.5% on a year-over-year basis.
The company reported revenues of $656.6 million, which topped the Zacks Consensus Estimate of $647.9 million as well. In fact, the top line improved 9% on a year-over-year basis. Results were boosted by a 3% rise in overall carload volumes.
In the quarter, operating income increased 17% to $234 million. Kansas City Southern’s operating ratio (operating expenses as a percentage of revenues) was 64.4% compared with 66.9% reported a year ago. Improvement in this key metric is a positive for the company.
Segment Results
The Chemical & Petroleum segment generated revenues of $136.9 million, up 10% year over year. Volumes improved 3% year over year. Revenues per carload also improved 7% from the prior-year quarter.
The Industrial & Consumer Products segment generated revenues of $152.5 million, up 9% year over year. Business volumes as well as revenues per carload increased 4% year over year.
The Agriculture & Minerals segment total revenue was116 million, up 2% year over year. While business volumes declined 1%, revenues per carload were up 3% both on a year-over-year basis.
The Energy segment generated revenues of $74.5 million, up 19% year over year. Impressive performances at the Utility Coal, Frac Sand and Crude Oil boosted the segment’s results. While business volumes decreased 2% year over year, revenues per carload rose 20%.
Intermodal revenues were $92.3 million, up 4% year over year. While business volumes improved 4%, revenues per carload increased 1% in the reported quarter.
Revenues at the Automotive segment came in at $61.4 million, up 19% year over year. While business volumes improved 7%, revenues per carload increased 12%.
Other revenues totaled $23 million, down% year over year.
Zacks Rank
Kansas City Southern carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the railroad space also keenly await third-quarter earnings reports from key players like Canadian National Railway Company (CNI - Free Report) , Norfolk Southern Corp. (NSC - Free Report) and Genesee & Wyoming Inc. in the coming days. While Canadian National and Norfolk Southern are scheduled to report on Oct 24 and Oct 25, respectively, Genesee & Wyoming will report on Oct 31.
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Kansas City Southern’s third-quarter 2017 earnings (on an adjusted basis) of $1.35 surpassed the Zacks Consensus Estimate of $1.32 per share. The bottom line also expanded 20.5% on a year-over-year basis.
The company reported revenues of $656.6 million, which topped the Zacks Consensus Estimate of $647.9 million as well. In fact, the top line improved 9% on a year-over-year basis. Results were boosted by a 3% rise in overall carload volumes.
In the quarter, operating income increased 17% to $234 million. Kansas City Southern’s operating ratio (operating expenses as a percentage of revenues) was 64.4% compared with 66.9% reported a year ago. Improvement in this key metric is a positive for the company.
Segment Results
The Chemical & Petroleum segment generated revenues of $136.9 million, up 10% year over year. Volumes improved 3% year over year. Revenues per carload also improved 7% from the prior-year quarter.
The Industrial & Consumer Products segment generated revenues of $152.5 million, up 9% year over year. Business volumes as well as revenues per carload increased 4% year over year.
The Agriculture & Minerals segment total revenue was116 million, up 2% year over year. While business volumes declined 1%, revenues per carload were up 3% both on a year-over-year basis.
The Energy segment generated revenues of $74.5 million, up 19% year over year. Impressive performances at the Utility Coal, Frac Sand and Crude Oil boosted the segment’s results. While business volumes decreased 2% year over year, revenues per carload rose 20%.
Intermodal revenues were $92.3 million, up 4% year over year. While business volumes improved 4%, revenues per carload increased 1% in the reported quarter.
Revenues at the Automotive segment came in at $61.4 million, up 19% year over year. While business volumes improved 7%, revenues per carload increased 12%.
Other revenues totaled $23 million, down% year over year.
Zacks Rank
Kansas City Southern carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the railroad space also keenly await third-quarter earnings reports from key players like Canadian National Railway Company (CNI - Free Report) , Norfolk Southern Corp. (NSC - Free Report) and Genesee & Wyoming Inc. in the coming days. While Canadian National and Norfolk Southern are scheduled to report on Oct 24 and Oct 25, respectively, Genesee & Wyoming will report on Oct 31.
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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