Categories AlphaGraphs, Earnings

Kansas City Southern Q2 profit declines 13% but beats estimates

Kansas City Southern (NYSE: KSU) reported a 13% decrease in earnings for the second quarter of 2019 due to higher costs and expenses as well as an increase in income tax expense. However, the results exceeded analysts’ expectations.

Net income fell by 13% to $129 million or $1.28 per share. Adjusted earnings increased by 6% to $1.64 per share. Revenues rose by 5% to $714 million. Overall, carload volumes were flat compared to the prior year.

Revenue growth for the second quarter of 2019 was led by a 19% increase in Chemicals and Petroleum due to growth in shipments related to Mexico energy reform, and a 5% increase in Automotive. These increases were partially offset by revenue declines in the remaining four commodity groups.

Kansas City Southern Q2 profit declines 13% but beats estimates

Energy revenues declined by 5%, as increased Utility Coal shipments were more than offset by declines in Frac Sand and Crude Oil. Industrial & Consumer Products and Agriculture & Minerals revenues each declined by 2%, and Intermodal revenues declined by 1%.

Looking ahead into the full year 2019, the company expects volume growth to be flat to slightly down, and revenue growth to be in the range of 5% to 7%. Capital expenditures are anticipated to be below $600 million in 2019.

Adjusted operating ratio is expected to be in the low end of 60% to 61% range by 2021, absorbing negative impact from loss of Mexican Fuel Excise Tax Credit. Adjusted earnings per share is predicted to be in the low-to-mid-teens compound annual growth rate (CAGR) for 2019 to 2021.

Also read: Schlumberger Q2 earnings and CEO appointment

For the second quarter, carloads and units remained virtually unchanged from the previous year at 569,900. This was due to the growth in chemical and petroleum offset declines in four commodity groups, industrial and consumer products, agriculture and minerals, energy, and intermodal. Revenue per carload/unit increased by 4% year-over-year to $1,190.

The company said its operating performance was driving an improvement in customer service, operating metrics and cost profile. This improvement in cost profile helped Kansas City Southern absorb a 130 basis point headwind to its adjusted operating ratio from the loss of the Mexican Fuel Excise Tax credit, while still improving profitability versus prior year.

Rival Union Pacific (NYSE: UNP) reported better-than-expected earnings for the second quarter of 2019 driven by lower operating expenses.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%

Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss

Key metrics from Nike’s (NKE) Q2 2025 earnings results

NIKE, Inc. (NYSE: NKE) reported total revenues of $12.4 billion for the second quarter of 2025, down 8% on a reported basis and down 9% on a currency-neutral basis. Net

FDX Earnings: FedEx Q2 2025 adjusted profit increases; revenue dips

Cargo giant FedEx Corporation (NYSE: FDX), which completed an organizational restructuring recently, announced financial results for the second quarter of 2025. Second-quarter earnings, excluding one-off items, were $4.05 per share,

Comments

  1. Pingback: الصيادلة
  2. Pingback: Medication safety
  3. Pingback: Fiverr Earn
  4. Pingback: Fiverr Earn
  5. Pingback: Fiverr Earn
  6. Pingback: Fiverr Earn
  7. Pingback: Fiverr Earn
  8. Pingback: 3pl Broker
  9. Pingback: TLI
  10. Pingback: french bulldog
  11. Pingback: fiverrearn.com
  12. Pingback: fiverrearn.com
  13. Pingback: springerdoodle
  14. Pingback: jute rugs
  15. Pingback: micro frenchies
  16. Pingback: bitcoin
  17. Pingback: future university
  18. Pingback: future university
  19. Pingback: future university
  20. Pingback: multisbo
  21. Pingback: french bulldogs
  22. Pingback: Fiverr
  23. Pingback: lean six sigma
  24. Pingback: Office packing
  25. Pingback: citi.com/activate
  26. Pingback: Classic Books 500
  27. Pingback: Media
  28. Pingback: FiverrEarn
  29. Pingback: Porn Australia
  30. Pingback: partners
  31. Pingback: Political Science
  32. Pingback: FiverrEarn
  33. Pingback: FiverrEarn
  34. Pingback: live sex cams
  35. Pingback: live sex cams
  36. Pingback: FiverrEarn
  37. Pingback: FiverrEarn
  38. Pingback: Kuliah Termurah
  39. Pingback: FiverrEarn
  40. Pingback: cheap sex cams
  41. Pingback: live sex cams
  42. Pingback: frt trigger
  43. Pingback: 늑대닷컴
  44. Pingback: Judi online
  45. Pingback: One Peace AMV
  46. Pingback: nang sydney
  47. Pingback: allgame
  48. Pingback: 918kiss
  49. Pingback: หวย24
  50. Pingback: Body Care
  51. Pingback: pg slot
  52. Pingback: Raahe Guide
  53. Pingback: upstate hotels
  54. Pingback: resort lake placid
  55. Pingback: electronic visa
  56. Pingback: weight loss
  57. Pingback: SaaS Lawyer
  58. Pingback: MasumINTL
  59. Pingback: itme.xyz
  60. Pingback: ItMe.Xyz
  61. Pingback: itme.xyz

Comments are closed.

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top