Kansas City Southern (NYSE:KSU) Expected to Post Earnings of $1.79 Per Share

Wall Street brokerages expect Kansas City Southern (NYSE:KSU) to post $1.79 earnings per share (EPS) for the current quarter, according to Zacks Investment Research. Four analysts have made estimates for Kansas City Southern’s earnings, with estimates ranging from $1.73 to $1.83. Kansas City Southern reported earnings per share of $1.57 in the same quarter last year, which suggests a positive year over year growth rate of 14%. The business is expected to report its next earnings report on Friday, October 18th.

On average, analysts expect that Kansas City Southern will report full year earnings of $6.74 per share for the current fiscal year, with EPS estimates ranging from $6.60 to $6.82. For the next year, analysts expect that the firm will post earnings of $7.69 per share, with EPS estimates ranging from $7.52 to $7.95. Zacks’ EPS averages are a mean average based on a survey of sell-side analysts that follow Kansas City Southern.

Kansas City Southern (NYSE:KSU) last released its quarterly earnings results on Friday, July 19th. The transportation company reported $1.64 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.60 by $0.04. Kansas City Southern had a return on equity of 12.45% and a net margin of 20.35%. The firm had revenue of $714.00 million for the quarter, compared to the consensus estimate of $704.55 million. During the same period last year, the business posted $1.54 EPS. The company’s revenue for the quarter was up 4.6% on a year-over-year basis.

Several brokerages have issued reports on KSU. JPMorgan Chase & Co. raised their target price on Kansas City Southern from $130.00 to $136.00 and gave the stock a “neutral” rating in a research report on Monday, July 22nd. Cowen set a $136.00 price target on Kansas City Southern and gave the company a “buy” rating in a research note on Friday, July 19th. Cascend Securities lowered shares of Kansas City Southern from a “buy” rating to a “hold” rating in a research report on Wednesday, July 17th. Morgan Stanley increased their price objective on shares of Kansas City Southern from $111.00 to $121.00 and gave the stock an “equal weight” rating in a research note on Monday, July 22nd. Finally, Raymond James raised their price objective on shares of Kansas City Southern from $140.00 to $141.00 and gave the stock a “strong-buy” rating in a report on Monday, July 22nd. Six research analysts have rated the stock with a hold rating, ten have given a buy rating and one has issued a strong buy rating to the company. The stock has a consensus rating of “Buy” and an average target price of $130.36.

Kansas City Southern stock traded down $0.43 during mid-day trading on Friday, reaching $132.66. 1,298,441 shares of the stock traded hands, compared to its average volume of 1,034,464. Kansas City Southern has a 12-month low of $90.55 and a 12-month high of $133.55. The business’s 50-day moving average is $122.73 and its 200-day moving average is $119.44. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.79 and a quick ratio of 0.59. The stock has a market capitalization of $13.17 billion, a PE ratio of 22.22, a price-to-earnings-growth ratio of 1.30 and a beta of 0.92.

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 2nd. Shareholders of record on Monday, September 9th will be issued a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a yield of 1.09%. The ex-dividend date is Friday, September 6th. Kansas City Southern’s dividend payout ratio is presently 24.12%.

In other Kansas City Southern news, EVP Warren K. Erdman sold 6,840 shares of Kansas City Southern stock in a transaction that occurred on Wednesday, September 4th. The shares were sold at an average price of $127.39, for a total transaction of $871,347.60. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, General Counsel Adam J. Godderz sold 1,390 shares of Kansas City Southern stock in a transaction that occurred on Monday, July 22nd. The shares were sold at an average price of $125.13, for a total transaction of $173,930.70. Following the transaction, the general counsel now directly owns 4,892 shares in the company, valued at approximately $612,135.96. The disclosure for this sale can be found here. In the last 90 days, insiders sold 11,730 shares of company stock valued at $1,482,378. Company insiders own 0.82% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Rehmann Capital Advisory Group raised its stake in Kansas City Southern by 81.3% during the 2nd quarter. Rehmann Capital Advisory Group now owns 223 shares of the transportation company’s stock valued at $27,000 after purchasing an additional 100 shares during the period. Berman Capital Advisors LLC grew its holdings in Kansas City Southern by 164.8% during the 2nd quarter. Berman Capital Advisors LLC now owns 241 shares of the transportation company’s stock valued at $29,000 after buying an additional 150 shares in the last quarter. HM Payson & Co. purchased a new stake in Kansas City Southern during the 2nd quarter valued at approximately $32,000. Thor Advisors LLC purchased a new stake in Kansas City Southern during the 1st quarter valued at approximately $37,000. Finally, Covington Capital Management bought a new stake in shares of Kansas City Southern during the second quarter valued at approximately $37,000. 87.12% of the stock is owned by hedge funds and other institutional investors.

About Kansas City Southern

Kansas City Southern, a transportation holding company, provides domestic and international rail transportation services in North America. The company serves a ten-state region in the midwest and southeast regions of the United States and has the shortest north/south rail route between Kansas City, Missouri, and ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi, and Texas.

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