EPS miss despite an otherwise solid result
Q118 EPS of $1.30 was below both AE/cons at $1.35/$1.33, while revenues of $639m were in-line with consensus and ~1% below AE. Given network difficulties in Q1, the company's OR deteriorated on a YoY basis (albeit slightly at 40bps), while volume growth was a moderate 1%; the softest quarterly result since Q416. Volumes across KSU's strategic growth businesses were mixed, with strength in intermodal (+8%) and automotive (+6%) offset by weakness in chemicals (-3%). In its qualitative Q2 guidance, KSU notes a favourable view for 80% of its served end-markets in Q2.Kansas City Southern is a transportation holding company with domestic and international rail operations in North America. The company's subsidiary, The Kansas City Southern Railway Company, is a United States Class I railroad that serves a several region in the midwest and southeast regions of United States and has north/south rail route between Kansas City, MO and several main ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi and Texas. The company's subsidiary, Kansas City Southern de Mexico, S.A. de C.V. operates a main commercial corridor of the Mexican railroad system and has as its main route a direct rail passageway between Mexico City and Laredo, TX.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.