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Kansas City Southern (KSU) Tops Q3 Earnings & Sales Estimates

Published 10/19/2017, 11:37 PM
Updated 07/09/2023, 06:31 AM

Kansas City Southern’s (NYSE:KSU) 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.

Kansas City Southern Price, Consensus and EPS Surprise

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

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 (NYSE:CNI) , Norfolk Southern Corp. (NYSE:NSC) and Genesee & Wyoming Inc. (NYSE:GWR) 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 (KSU): Free Stock Analysis Report

Canadian National Railway Company (CNI): Free Stock Analysis Report

Norfolk Souther Corporation (NSC): Free Stock Analysis Report

Genesee & Wyoming, Inc. (GWR): Free Stock Analysis Report

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