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Kansas City Southern (KSU) Q1 Earnings Top Estimates, Up Y/Y

Zacks Equity Research

Kansas City Southern’s KSU first-quarter 2019 earnings (excluding 52 cents from non-recurring items) of $1.54 beat the Zacks Consensus Estimate of $1.45. The bottom line also rose 18.5% on a year-over-year basis. Results were aided by higher revenues across most segments and a better operational performance.

The company delivered revenues of $674.8 million, surpassing the Zacks Consensus Estimate of $668 million. Moreover, the top line improved 5.7% on a year-over-year basis. Overall, carload volumes dipped 1% year over year on account of service disruption.

In the reported quarter, adjusted operating income increased 10% to $242 million. Kansas City Southern’s operating ratio (operating expenses as a percentage of revenues) improved to 64.2% from 65.8% a year ago despite operating expenses rising 22.5%.

Kansas City Southern Price, Consensus and EPS Surprise

 

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


Segmental Details

The Chemical & Petroleum segment generated revenues of $168.6 million, up 21% year over year. Volumes expanded 17% year over year. Revenues per carload also climbed 4% from the prior-year quarter.

The Industrial & Consumer Products segment generated revenues of $149.8 million, up 2% year over year. While business volumes contracted 3%, revenues per carload increased 5% year over year.

The Agriculture & Minerals segment’s total revenues were $122.9 million, up 8% year over year. While business volumes increased 9%, revenues per carload slipped 1%, both on a year-over-year basis.

The Energy segment’s revenues logged $64.6 million, up 5% year over year. While business volumes expanded 6% year over year, revenues per carload remained flat.

Intermodal revenues were $79.9 million, down 12% year over year. This downside was due to auto plant shutdowns among other factors. Moreover, business volumes and revenues per carload decreased 9% and 3%, respectively, in the quarter under review.

Revenues at the Automotive segment decreased 4% year over year to $57.6 million as a result of auto plant shutdowns among other factors. While business volumes declined 8%, revenues per carload climbed 5%, both on a year-over-year basis.

Other revenues totaled $31.4 million, up 15% year over year.

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 broader Transportation sector are keenly awaiting first-quarter 2019 earnings reports from key players, namely Union Pacific Corporation UNP, Landstar System, Inc. LSTR and United Parcel Service, Inc. UPS. While Union Pacific is scheduled to announce first-quarter earnings on Apr 18, Landstar and UPS will release the same on Apr 24 and Apr 25, respectively.

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Kansas City Southern (KSU) : Free Stock Analysis Report
 
Union Pacific Corporation (UNP) : Free Stock Analysis Report
 
Landstar System, Inc. (LSTR) : Free Stock Analysis Report
 
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
 
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