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Kansas City Southern (KSU) Q4 Earnings Meet, Revenues Top

Kansas City Southern 's KSU fourth-quarter 2018 earnings (excluding 3 cents from non-recurring items) of $1.56 met the Zacks Consensus Estimate. The bottom line, however, rose 13% on a year-over-year basis.

The company delivered revenues of $694 million, marginally beating the Zacks Consensus Estimate of $691.9 million. However, the top line improved 5.1% on a year-over-year basis. Overall carload volumes remained flat year over year.

In the reported quarter, adjusted operating income increased 4% to $248 million. Kansas City Southern's operating ratio (operating expenses as a percentage of revenues) deteriorated to 64.3% compared with 64% a year ago due to 6% rise in operating expenses. The company aims at an operating ratio of 60-61% by 2021.

Kansas City Southern Price, Consensus and EPS Surprise

Kansas City Southern Price, Consensus and EPS Surprise | Kansas City Southern Quote

Segmental Details

The Chemical & Petroleum segment generated revenues of $164 million, up 19% year over year. Volumes expanded 16% year over year. Revenues per carload also climbed 3% from the prior-year quarter.

The Industrial & Consumer Products segment generated revenues of $139.5 million, down 5% year over year. Dismal performances across all segmental units hurt results. While business volumes contracted 9%, revenues per carload increased 4% year over year.

The Agriculture & Minerals segment's total revenues were $131.7 million, up 8% year over year. While business volumes inched up 3%, revenues per carload were up 5%, both on a year-over-year basis.

The Energy segment generated revenues of $65.3 million, down 6% year over year. Disappointing performances at the Utility Coal and Frac Sand units hampered the segment's results. While business volumes declined 14% year over year, revenues per carload augmented 9%.

Intermodal revenues were $98.2 million, up 1% year over year. While business volumes ascended 4%, revenues per carload dipped 3% in the quarter under review.

Revenues at the Automotive segment came in at $59.9 million, down 1% year over year. While business volumes slid 5%, revenues per carload increased 4%, both on a year-over-year basis.

Other revenues totaled $35.4 million, up 36% year over year.

Zacks Rank

Kansas City Southern carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Upcoming Releases

Investors interested in the broader Transportation sector are keenly awaiting fourth-quarter earnings reports from key players, namely American Airlines AAL , Norfolk Southern Corp. NSC and Southwest Airlines LUV . Each of the companies will report final-quarter results on Jan 24.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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