Kansas City Southern Earnings: What Investors Should Watch

Kansas City Southern (NYSE:KSU) will report earnings before markets open on Friday, July 19th. Kansas City Southern, through its subsidiary, is the holding company for transportation segment subsidiaries and affiliates. The Company operates a railroad system that provides shippers with rail freight services in commercial and industrial markets of the United States and Mexico.

Here is your Cheat Sheet to Kansas City Southern Earnings:

Earnings Expectations: Analysts expect earnings of $0.95 per share on revenues of $577.08 million. Currently, the company’s P/E ratio stands at 30.88.

Analyst Trends:

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 is a profit of $4.09, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Kansas City Southern has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 1,852 1,480 1,815 2,098 2,239
Diluted EPS ($) 1.86 0.61 1.67 3.00 3.43

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 545.30 577.40 568.40 552.80
Diluted EPS ($) 1.09 0.82 0.83 0.94

Past Performance:
Kansas City Southern has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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