Kansas City Southern
) reported first quarter 2014 adjusted earnings of $1.05 per
share, handsomely beating the Zacks Consensus Estimate of 98
cents. Adjusted earnings increased 18% from 89 cents in the
year-ago quarter buoyed by higher freight volumes. The positive
results pushed the stock higher by 2.3% on Wednesday trade on
Kansas City Southern - Quarterly Earnings Per
Share | FindTheBest
Total revenue was $607.4 million in the first quarter, up 9.9%
year over year and almost in line with the Zacks Consensus
Estimate of $608 million. The year-over-year increase was
primarily attributable to 4% growth in carloads and solid revenue
growth in the Agricultural and Intermodal segments.
Adjusted operating income was $190.0 million, up 17.0% year
over year. Adjusted operating ratio was 68.7%, resulting in an
improvement of 180 basis points from last quarter.
Segment Quarterly Results
Chemical & Petroleum
segment contributed $105.2 million to revenues, up 2.7% year over
year. Volume was down 2.9% year over year while revenue per unit
grew 5.8% year over year.
Industrial & Consumer
Products generated revenues of $149.1 million, up 3.4% year over
year. Business volume was down 2% year over year. Revenue per
carload was up 5.4% year over year.
Agriculture & Minerals
segment revenues were $113.4 million, up 40% year over year.
Business volume grew 26.5% year over year. Revenue per carload
also grew 10.7% year over year.
segment generated $78.2 million in revenues, up 2.5% year over
year. Business volume rose 1.8% year over year. Revenue per
carload inched up 0.7% year over year.
segment revenues were $88.0 million, up 10.3% year over year.
Business volume expanded 3.1% year over year. Revenue per carload
grew 7.1% year over year.
segment accounted for $52.4 million of total revenue, up 6.7%
year over year. Business volume was up 5.9% year over year.
Revenue per carload rose 0.8% year over year.
revenues were $21.1 million, up 5.5% year over year.
The company exited the first quarter with cash and cash
equivalents of $167.5 million compared with $429.5 million at the
end of 2013. Long-term debt increased to $1,857.3 million,
slightly up from $1,856.9 million at the end of 2013. The company
had free cash flows of $7.6 million in the quarter ended Mar 31,
2014 compared with $2.8 million in the corresponding quarter a
Capital expenditures for the first three months amounted to
$98.0 million compared with $112.7 million for the same period a
The company paid a dividend of $23.8 million during the first
We believe Kansas City Southern remains well positioned to
reap benefits from the ongoing strong pricing trend. The
company's productivity initiatives and efficient cost control
measures are expected to drive operating performance over the
long term. Further, strategic investments in infrastructural
development will ensure the achievement of growth goals.
However, we remain cautious on the stock due to competitive
pressure, a unionized workforce and heavy investments. Further,
the ongoing uncertainties in its coal business and a competitive
market may also pose significant headwinds to the company's
Kansas City Southern, carries a Zacks Rank #3 (Hold).
) reported first quarter 2014 earnings of 40 cents, surpassing
the Zacks Consensus Estimate of 38 cents.
Other major railroad carriers expected to report first quarter
earnings in the coming week are
Canadian Pacific Railway Limited
Norfolk Southern Corporation
CDN PAC RLWY (CP): Free Stock Analysis Report
CSX CORP (CSX): Free Stock Analysis Report
KANSAS CITY SOU (KSU): Free Stock Analysis
NORFOLK SOUTHRN (NSC): Free Stock Analysis
To read this article on Zacks.com click here.