Kansas City Southern
The 10-second takeaway
For the quarter ended March 31 (Q1), Kansas City Southern missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew significantly.
Margins expanded across the board.
Kansas City Southern notched revenue of $552.8 million. The 17 analysts polled by S&P Capital IQ wanted to see a top line of $571.5 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.89. The 22 earnings estimates compiled by S&P Capital IQ anticipated $0.88 per share. Non-GAAP EPS of $0.89 for Q1 were 19% higher than the prior-year quarter's $0.75 per share. 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.
For the quarter, gross margin was 58.4%, much 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. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $577.9 million. On the bottom line, the average EPS estimate is $0.95.
Next year's average estimate for revenue is $2.38 billion. The average EPS estimate is $4.08.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 448 members out of 463 rating the stock outperform, and 15 members rating it underperform. Among 111 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 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 hold, with an average price target of $96.89.
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