We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Kansas City Southern (KSU) Q2 Earnings Beat on Volume Growth
Read MoreHide Full Article
Kansas City Southern’s second-quarter 2018 adjusted earnings per share of $1.54 surpassed the Zacks Consensus Estimate of $1.52. The bottom line also improved 16% on a year-over-year basis, buoyed by volume growth. Overall carload volumes inched up 1% in the reported quarter.
Kansas City Southern recorded revenues of $682.4 million, which missed the Zacks Consensus Estimate of $688.1 million. However, it compared favorably with the year-ago number of $656.4 million. Strong performance at the Chemical & Petroleum and Automotive units led to this year-over-year improvement in top line.
Meanwhile, operating income increased 3% (on a reported basis) to $245.8 million. This Zacks Rank #4 (Sell) company’s operating ratio (operating expenses as a percentage of revenues) deteriorated to 64% from 63.5% a year ago. Operating expenses rose 5% in the quarter under review. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company expects volume growth to accelerate in the latter half of 2018 and 2019, backed by a strong economy and network capacity investments.
Kansas City Southern Price, Consensus and EPS Surprise
Chemical & Petroleum segment generated revenues of $157.8 million, up 14% year over year. Volumes improved 3% year over year. Revenues per carload also increased 10% from the year-ago figure.
The Industrial & Consumer Products segment raked in revenues of $152.7 million, up 3% year over year. Business volumes expanded 3% while revenues per carload remained flat year over year.
Total revenues at the Agriculture & Minerals segment inched up 1% to $125.1 million. Business volumes remained unchanged while revenues per carload were up 1%, both on a year-over-year basis.
The Energy segment generated revenues of $61.3 million, down 20% year over year. This downside was due to low utility coal volumes from a Texas utility closure this January. While business volumes dropped 18% year over year, revenues per carload contracted 3%.
Intermodal revenues totaled $93.7 million, up 3% year over year. While business volumes rose 3%, revenues per carload were flat in the reported quarter.
Revenues at the Automotive segment came in at $67.3 million, up 17% year over year. While business volumes grew 12%, revenues per carload gained 4%.
Other revenues totaled $29.3 million, up 9% year over year.
Upcoming Releases
Investors interested in the broader Transportation sector are keenly awaiting second-quarter earnings reports from key players, namely Canadian National Railway Company (CNI - Free Report) , Norfolk Southern Corporation (NSC - Free Report) and United Parcel Service, Inc. (UPS - Free Report) . While Canadian National will report second-quarter earnings on Jul 24, Norfolk Southern and UPS will announce the same on Jul 25.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Kansas City Southern (KSU) Q2 Earnings Beat on Volume Growth
Kansas City Southern’s second-quarter 2018 adjusted earnings per share of $1.54 surpassed the Zacks Consensus Estimate of $1.52. The bottom line also improved 16% on a year-over-year basis, buoyed by volume growth. Overall carload volumes inched up 1% in the reported quarter.
Kansas City Southern recorded revenues of $682.4 million, which missed the Zacks Consensus Estimate of $688.1 million. However, it compared favorably with the year-ago number of $656.4 million. Strong performance at the Chemical & Petroleum and Automotive units led to this year-over-year improvement in top line.
Meanwhile, operating income increased 3% (on a reported basis) to $245.8 million. This Zacks Rank #4 (Sell) company’s operating ratio (operating expenses as a percentage of revenues) deteriorated to 64% from 63.5% a year ago. Operating expenses rose 5% in the quarter under review. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company expects volume growth to accelerate in the latter half of 2018 and 2019, backed by a strong economy and network capacity investments.
Kansas City Southern Price, Consensus and EPS Surprise
Kansas City Southern Price, Consensus and EPS Surprise | Kansas City Southern Quote
Segmental Results
Chemical & Petroleum segment generated revenues of $157.8 million, up 14% year over year. Volumes improved 3% year over year. Revenues per carload also increased 10% from the year-ago figure.
The Industrial & Consumer Products segment raked in revenues of $152.7 million, up 3% year over year. Business volumes expanded 3% while revenues per carload remained flat year over year.
Total revenues at the Agriculture & Minerals segment inched up 1% to $125.1 million. Business volumes remained unchanged while revenues per carload were up 1%, both on a year-over-year basis.
The Energy segment generated revenues of $61.3 million, down 20% year over year. This downside was due to low utility coal volumes from a Texas utility closure this January. While business volumes dropped 18% year over year, revenues per carload contracted 3%.
Intermodal revenues totaled $93.7 million, up 3% year over year. While business volumes rose 3%, revenues per carload were flat in the reported quarter.
Revenues at the Automotive segment came in at $67.3 million, up 17% year over year. While business volumes grew 12%, revenues per carload gained 4%.
Other revenues totaled $29.3 million, up 9% year over year.
Upcoming Releases
Investors interested in the broader Transportation sector are keenly awaiting second-quarter earnings reports from key players, namely Canadian National Railway Company (CNI - Free Report) , Norfolk Southern Corporation (NSC - Free Report) and United Parcel Service, Inc. (UPS - Free Report) . While Canadian National will report second-quarter earnings on Jul 24, Norfolk Southern and UPS will announce the same on Jul 25.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>