Will Kansas City Southern Beat These Analyst Estimates?
Kansas City Southern (NYS: KSU) is expected to report Q2 earnings on July 19. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Kansas City Southern's revenues will grow 5.7% and EPS will increase 11.8%.
The average estimate for revenue is $576.6 million. On the bottom line, the average EPS estimate is $0.95.
Revenue details
Last quarter, Kansas City Southern recorded revenue of $552.8 million. GAAP reported sales were 1.0% higher than the prior-year quarter's $547.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Last quarter, non-GAAP EPS came in at $0.89. GAAP EPS of $0.94 for Q1 were 38% higher than the prior-year quarter's $0.68 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Recent performance
For the preceding quarter, gross margin was 39.1%, 140 basis points better than the prior-year quarter. Operating margin was 29.5%, 70 basis points better than the prior-year quarter. Net margin was 18.8%, 510 basis points better than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $2.39 billion. The average EPS estimate is $4.10.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 449 members out of 465 rating the stock outperform, and 16 members rating it underperform. Among 115 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 114 give Kansas City Southern a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kansas City Southern is hold, with an average price target of $96.89.
If you're interested in transportation companies like Kansas City Southern, then you should check out our special report that features 3 companies who depend on, and invest in, that industry. Learn the basic financial habits of millionaires next door and get these 3 focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
Add Kansas City Southern to My Watchlist.
The article Will Kansas City Southern Beat These Analyst Estimates? originally appeared on Fool.com.
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. The Motley Fool has no position in any of the stocks mentioned. 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 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
