Kansas City Southern
The 10-second takeaway
For the quarter ended March 31 (Q1), Kansas City Southern met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.
Margins grew across the board.
Kansas City Southern logged revenue of $547.5 million. The 14 analysts polled by S&P Capital IQ expected a top line of $542.8 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $488.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.75. The 19 earnings estimates compiled by S&P Capital IQ anticipated $0.72 per share. GAAP EPS of $0.68 for Q1 were 17% higher than the prior-year quarter's $0.58 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.7%, 220 basis points better than the prior-year quarter. Operating margin was 28.8%, 260 basis points better than the prior-year quarter. Net margin was 13.7%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $593.4 million. On the bottom line, the average EPS estimate is $0.90.
Next year's average estimate for revenue is $2.34 billion. The average EPS estimate is $3.53.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 425 members out of 440 rating the stock outperform, and 15 members rating it underperform. Among 108 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 give Kansas City Southern a green thumbs-up, and three 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 $76.60.
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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 of Motley 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.