Brokerages Anticipate Kansas City Southern (KSU) Will Post Earnings of $1.42 Per Share

Brokerages predict that Kansas City Southern (NYSE:KSU) will report earnings of $1.42 per share for the current quarter, Zacks reports. Three analysts have made estimates for Kansas City Southern’s earnings. The lowest EPS estimate is $1.36 and the highest is $1.49. Kansas City Southern reported earnings per share of $1.17 during the same quarter last year, which suggests a positive year over year growth rate of 21.4%. The company is expected to issue its next earnings report on Friday, April 20th.

On average, analysts expect that Kansas City Southern will report full-year earnings of $6.24 per share for the current financial year, with EPS estimates ranging from $5.84 to $6.50. For the next fiscal year, analysts forecast that the firm will report earnings of $7.02 per share, with EPS estimates ranging from $6.31 to $7.30. Zacks Investment Research’s EPS calculations are an average based on a survey of sell-side research analysts that that provide coverage for Kansas City Southern.

Kansas City Southern (NYSE:KSU) last announced its quarterly earnings results on Friday, January 19th. The transportation company reported $1.38 earnings per share for the quarter, beating analysts’ consensus estimates of $1.36 by $0.02. Kansas City Southern had a net margin of 37.24% and a return on equity of 12.07%. The firm had revenue of $660.40 million during the quarter, compared to analysts’ expectations of $658.33 million. During the same period in the previous year, the company earned $1.21 earnings per share. Kansas City Southern’s quarterly revenue was up 10.3% compared to the same quarter last year.

A number of brokerages recently weighed in on KSU. BMO Capital Markets reissued a “hold” rating and issued a $109.00 price target on shares of Kansas City Southern in a research report on Friday, November 24th. Goldman Sachs Group began coverage on shares of Kansas City Southern in a research report on Monday, November 13th. They issued a “neutral” rating and a $109.00 price target for the company. Finally, Zacks Investment Research raised shares of Kansas City Southern from a “hold” rating to a “buy” rating and set a $125.00 price target for the company in a research report on Wednesday, January 24th. Six investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Kansas City Southern presently has an average rating of “Buy” and a consensus price target of $115.47.

In related news, COO Jeffrey M. Songer sold 3,000 shares of the stock in a transaction dated Thursday, December 7th. The shares were sold at an average price of $111.80, for a total transaction of $335,400.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Henry J. Maier purchased 1,000 shares of the business’s stock in a transaction that occurred on Monday, February 12th. The shares were purchased at an average cost of $104.35 per share, with a total value of $104,350.00. Following the completion of the acquisition, the director now directly owns 5,159 shares of the company’s stock, valued at $538,341.65. The disclosure for this purchase can be found here. Corporate insiders own 0.95% of the company’s stock.

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Xact Kapitalforvaltning AB grew its position in Kansas City Southern by 10.5% during the fourth quarter. Xact Kapitalforvaltning AB now owns 13,923 shares of the transportation company’s stock worth $1,465,000 after buying an additional 1,319 shares during the period. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp grew its position in Kansas City Southern by 86.8% during the fourth quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 109,879 shares of the transportation company’s stock worth $11,561,000 after buying an additional 51,061 shares during the period. We Are One Seven LLC acquired a new position in Kansas City Southern during the fourth quarter worth about $780,000. OLD Mutual Customised Solutions Proprietary Ltd. grew its position in Kansas City Southern by 50.0% during the fourth quarter. OLD Mutual Customised Solutions Proprietary Ltd. now owns 6,300 shares of the transportation company’s stock worth $663,000 after buying an additional 2,100 shares during the period. Finally, Halsey Associates Inc. CT grew its position in Kansas City Southern by 4.4% during the fourth quarter. Halsey Associates Inc. CT now owns 74,760 shares of the transportation company’s stock worth $7,866,000 after buying an additional 3,135 shares during the period. 83.75% of the stock is owned by hedge funds and other institutional investors.

Shares of Kansas City Southern (KSU) traded up $1.43 on Tuesday, reaching $108.60. 238,917 shares of the company were exchanged, compared to its average volume of 1,424,425. Kansas City Southern has a 52-week low of $81.54 and a 52-week high of $114.85. The stock has a market capitalization of $11,128.76, a PE ratio of 11.87, a PEG ratio of 1.33 and a beta of 0.83. The company has a current ratio of 0.70, a quick ratio of 0.54 and a debt-to-equity ratio of 0.46.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 4th. Investors of record on Monday, March 12th will be issued a dividend of $0.36 per share. The ex-dividend date of this dividend is Friday, March 9th. This represents a $1.44 annualized dividend and a yield of 1.33%. Kansas City Southern’s dividend payout ratio is currently 15.64%.

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About Kansas City Southern

Kansas City Southern (KCS) is a holding company. The Company has domestic and international rail operations in North America that are focused on the north/south freight corridor connecting commercial and industrial markets in the central United States with industrial cities in Mexico. The Company’s subsidiaries include The Kansas City Southern Railway Company (KCSR) and Kansas City Southern de Mexico, SA de C.V.

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