Kansas City Southern’s second-quarter 2019 earnings (excluding 36 cents from non-recurring items) of $1.64 beat the Zacks Consensus Estimate by 4 cents. The bottom line also rose 6.5% on a year-over-year basis. Results were aided by a better operational performance. This outperformance on the earnings front seems to have found favor with investors. As a result, the stock gained in pre-market trading.
The company delivered revenues of $714 million, surpassing the Zacks Consensus Estimate of $703.9 million. Moreover, the top line improved 4.6% on a year-over-year basis mainly owing to strong performance at the Chemicals and Petroleum unit.
Overall, carload volumes were flat year over year as growth in the Chemical and Petroleum unit was mitigated by declines in the Industrial and Consumer products, Agriculture and Minerals, Energy, and Intermodal segments.
In the reported quarter, operating income (on a reported basis) decreased 15.4% to $208 million. However, operating income (excluding restructuring charges pertaining to Precision Scheduled Railroading initiatives) increased 5.4% to $259 million.
Kansas City Southern’s adjusted operating ratio (operating expenses as a percentage of revenues) improved to 63.7% from 64% a year ago despite higher adjusted operating expenses. Notably, adjusted operating ratio was negatively impacted to the tune of 130 basis points owing to the loss of the Mexican Fuel Excise Tax credit. Lower the value of operating ratio the better.
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.
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Kansas City Southern’s second-quarter 2019 earnings (excluding 36 cents from non-recurring items) of $1.64 beat the Zacks Consensus Estimate by 4 cents. The bottom line also rose 6.5% on a year-over-year basis. Results were aided by a better operational performance. This outperformance on the earnings front seems to have found favor with investors. As a result, the stock gained in pre-market trading.
The company delivered revenues of $714 million, surpassing the Zacks Consensus Estimate of $703.9 million. Moreover, the top line improved 4.6% on a year-over-year basis mainly owing to strong performance at the Chemicals and Petroleum unit.
Overall, carload volumes were flat year over year as growth in the Chemical and Petroleum unit was mitigated by declines in the Industrial and Consumer products, Agriculture and Minerals, Energy, and Intermodal segments.
In the reported quarter, operating income (on a reported basis) decreased 15.4% to $208 million. However, operating income (excluding restructuring charges pertaining to Precision Scheduled Railroading initiatives) increased 5.4% to $259 million.
Kansas City Southern’s adjusted operating ratio (operating expenses as a percentage of revenues) improved to 63.7% from 64% a year ago despite higher adjusted operating expenses. Notably, adjusted operating ratio was negatively impacted to the tune of 130 basis points owing to the loss of the Mexican Fuel Excise Tax credit. Lower the value of operating ratio the better.
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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