Kansas City Southern Beats Estimates Yet Again

Before you go, we thought you'd like these...
Before you go close icon

Kansas City Southern (NYS: KSU) reported earnings on Jan. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Kansas City Southern missed on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased, and earnings per share grew significantly.

Margins expanded across the board.

Revenue details
Kansas City Southern reported revenue of $530 million. The 13 analysts polled by S&P Capital IQ predicted net sales of $549 million. Sales were 11% higher than the prior-year quarter's $479 million

anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $1.01. The 18 earnings estimates compiled by S&P Capital IQ averaged $0.79 per share on the same basis. GAAP EPS of $0.87 for Q4 were 75% higher than the prior-year quarter's $0.50 per share.

anImage

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 57.9%, 2,000 basis points better than the prior-year quarter. Operating margin was 28.4%, 20 basis points better than the prior-year quarter. Net margin was 18.0%, 660 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $549 million. On the bottom line, the average EPS estimate is $0.74.

Next year's average estimate for revenue is $2.4 billion. The average EPS estimate is $3.49.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 407 members out of 423 rating the stock outperform, and 16 members rating it underperform. Among 108 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give Kansas City Southern a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kansas City Southern is outperform, with an average price target of $69.50.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners