Kansas City Southern Earnings: Everything You Must Know Now

Kansas City Southern (NYSE:KSU) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Kansas City Southern Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.94% to $0.96 in the quarter versus EPS of $0.85 in the year-earlier quarter.

Revenue: Rose 6.24% to $579.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kansas City Southern reported adjusted EPS income of $0.96 per share. By that measure, the company beat the mean analyst estimate of $0.95. It beat the average revenue estimate of $576.67 million.

Quoting Management: “Considering the weakness in grain volumes due to the drought in 2012, KCS reported impressive second quarter 2013 results as reflected by year-over-year increases in carloads (+ 3%), revenues (+ 6%) and adjusted earnings per share (+ 9%),” stated President and Chief Executive Officer David L. Starling. “The combination of solid revenue growth, a steady mid-single digit improvement to pricing and continued control over operating expenses resulted in a second quarter operating ratio of 69.0%, a 1.5 point improvement over last year’s adjusted operating ratio. This performance speaks to the strength of KCS’ operations and the diversity of the franchise.”

Key Stats (on next page)…

Revenue increased 4.79% from $552.8 million in the previous quarter. EPS increased 7.87% from $0.89 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.15 to a profit $1.12. For the current year, the average estimate has moved down from a profit of $4.13 to a profit of $4.09 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)