|Bid||102.22 x 1000|
|Ask||120.00 x 800|
|Day's Range||101.78 - 104.40|
|52 Week Range||99.47 - 120.34|
|Beta (3Y Monthly)||0.56|
|PE Ratio (TTM)||10.89|
|Earnings Date||Oct 19, 2018|
|Forward Dividend & Yield||1.44 (1.40%)|
|1y Target Est||127.00|
Kansas City Southern (KSU) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Canadian Pacific Railway (CP) registered 6% YoY (year-over-year) carload traffic growth in week 39. CP moved ~37,100 railcars excluding intermodal traffic in the week compared to ~35,000 units in the same week last year. The railroad’s YoY rail traffic volume gain of 2.8% was in third place during the week. Union Pacific (UNP) remained in first place with 4.9% gains. CSX (CSX) with a 4% gain ranked second. Kansas City Southern (KSU) ranked fourth in terms of week 39’s total volume gains.
Kansas City Southern (KSU), the smallest US class I railroad, reported a marginal loss of 0.7% YoY (year-over-year) in carload traffic in week 39. The railroad hauled slightly more than 26,000 carloads during the week. KSU’s carload traffic trended in the reverse direction compared to 0.5% YoY gains reported by US railroad (XTN) companies in the week.
CSX (CSX), a major Eastern US railroad, reported 5.9% YoY (year-over-year) growth in week 39 carload traffic. The company moved ~73,100 railcars excluding intermodal units in the week compared to 69,000 units in the same period last year.
Union Pacific (UNP), BNSF Railway’s competitor in the Western US, reported a 2.3% YoY (year-over-year) carload traffic slump in week 39. UNP hauled ~95,800 railcars except for intermodal units compared to ~98,000 in the corresponding week of 2017. The decline in Union Pacific’s carload traffic was offset by 14.2% YoY gains in Week 39 intermodal traffic. The railroad was in the top position for week 39 rail traffic gains with 4.9% gains. UNP’s carload traffic loss was in contrast with rival BNSF Railway’s (BRK.B) 3.9% gains and US railroads’ 3.7% gains in the week.
The AAR (Association of American Railroads) published its weekly traffic data on October 3. The data pertained to 12 major North American railroads during week 39, which ended on September 29. The rail traffic data is grouped into carload traffic and intermodal units. Intermodal units are expressed in containers and truck trailers.
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it Read More...
Rail stock CSX is the IBD Stock Of The Day, the leader in a top industry group. CSX is benefiting from a strong U.S. economy, and its stock is near a buy point.
Canadian Pacific Railway (CP) was the second-best performer in terms of rail traffic volume gains in Week 38. The company’s YoY (year-over-year) volume gain of 7.1% was just behind Union Pacific’s 7.3% YoY gain.
Railroads’ capital expenditure is based on their revenue. Higher capex may mean a railroad is confident about its future business outlook. Approximately 50%–60% of railroads’ capital expenditure goes toward maintaining freight cars, tracks, locomotives, bridges, tunnels, and other infrastructure and equipment. In 2017, ~19% of US railroads’ (IYJ) revenue had gone toward capex in the last ten years, while 3% of the average US manufacturer’s revenue had gone toward capex.
Free cash flow (or FCF) is an important metric in the railroad (FXR) industry. Companies primarily use FCF to buy back stock, pay dividends, and reinvest in their business. Let’s compare major US railroads’ FCF growth in H1 2018.
Kansas City Southern (KSU) remained the only Class I railroad company to report lower YoY (year-over-year) rail traffic in Week 38. However, KSU saw a 0.2% YoY gain in its carload traffic in the week.
The United States-Mexico-Canada Agreement is likely to boost the Kansas City Southern (KSU) stock as it has significant Mexican exposure.
The second quarter was one of the best quarters for major North American railroads (XLI) in terms of YoY (year-over-year) earnings growth. Their earnings were boosted by lower tax, pricing gains, stock buybacks, and reduced operating expenses. Let’s take a look at the companies’ adjusted EPS.
Major Eastern US railroad company CSX Corporation (CSX) witnessed a 7.6% YoY (year-over-year) rise in its Week 38 carload traffic. The company moved ~71,600 railcars excluding intermodal units in the week compared to 66,500 units in the same period last year.
In the railroad (IYT) industry, operating ratios are crucial. The wider a company’s operating margin, the higher its operating efficiency, and in turn, its performance. Recently, Union Pacific (UNP) announced that it has kickstarted its new operating strategy, Unified Plan 2020, which is expected to lower UNP’s operating expenses in future quarters. Let’s compare major railroads’ second-quarter operating margins.
Freight volumes and pricing gains determine a railroad’s revenue growth. The second quarter turned out to be a good quarter for major US railroads’ top-line growth, with three railroads (XTN) reporting double-digit revenue growth. Let’s take a look.
The AAR (Association of American Railroads) published its weekly rail traffic data for 12 key North American railroad companies on September 26. The data were for Week 38, which ended on September 22. AAR’s weekly freight data are classified into carload traffic and intermodal units, which are expressed in containers and truck trailers.
As Canada’s largest rail freight carrier, Canadian National Railway (CNI) recorded a 6.6% YoY (year-over-year) carload traffic loss in Week 37. During the week, the railroad hauled ~61,600 railcars excluding intermodal volumes from ~66,000 units in Week 37 of 2017.
In Week 37, Eastern US railroad CSX Corporation (CSX) reported a 7.7% YoY (year-over-year) rise in carload traffic. The railroad hauled ~69,100 railcars excluding intermodal units in the week, compared to 64,100 units in Week 37 of 2017.
Impala Asset Management is a multi-billion dollar Connecticut-based hedge fund that was founded by Robert Bishop in 2004. Prior to starting Impala Asset Management, Robert Bishop worked as a Chief Investment Officer at Soros Fund Management, managing the Quantum Endowment Fund. Other positions which have helped him accumulate great knowledge of the investment space include […]
In Week 37, Western US major rail freight carrier Union Pacific (UNP) recorded 1.8% YoY (year-over-year) carload traffic growth. Union Pacific carried ~97,400 railcars excluding intermodal units compared to ~95,600 in the comparable period of 2017.
On September 17, US President Donald Trump announced the imposition of 10% tariffs on ~$200.0 billion worth of Chinese imports. On September 18, China retaliated against President Trump’s action with an announcement of a tariff increase on $60.0 billion of US exports to China. The Finance Ministry of China affirmed that it would go forward with plans announced in August.
US-based Genesee & Wyoming (GWR) is a worldwide player in the railroad industry. With over 100 years of history, the company has a presence around the world, including North America, Latin America, Europe, and Australia.
Kansas City Southern will release its third quarter 2018 financial results on Friday, October 19, 2018, before the opening of trading on the New York Stock Exchange.