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Kansas City Southern’s stock climbs after Q1 results top expectations

By Staff Correspondent |
Earnings Update by AlphaStreet

Kansas City Southern (NYSE: KSU) surpassed analysts’ expectations on revenue and earnings for the first quarter of 2019, sending shares climbing over 3% in morning hours on Wednesday.

Total revenues increased 6% year-over-year to $675 million. However, carload volumes fell 1%, mainly due to service interruption at Lazaro Cardenas.

Kansas City Southern reports first quarter 2019 earnings

On a reported basis, net income available to common stockholders dropped to $103 million, or $1.02 per share, from $144 million, or $1.40 per share, in the prior-year period, hurt by higher operating expenses. Adjusted EPS rose 18% year-over-year to $1.54.

Kansas City recorded revenue increases across most of its commodity groups with the highest in Chemical & Petroleum. Chemical & Petroleum revenues rose 21% year-over-year to $168.6 million, helped by refined product shipments to Mexico.

Agriculture & Minerals saw revenue growth of 8% due to improved network cycle times. Revenues declined in Intermodal and Automotive by 12% and 4%, respectively, due to auto plant shutdowns and teacher protests.

During the quarter, total carloads and units increased in the Chemical & Petroleum, Agriculture & Minerals, and Energy commodity groups while the remaining groups posted declines. The highest increase was in Chemical & Petroleum at 17%.

Revenue per carload/unit increased in the Chemical & Petroleum, Industrial & Consumer Products and Automotive commodity groups. Agriculture & Minerals saw a decline while Energy remained flat compared to the year-ago period.

 

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