Kansas City Southern Earnings: Everything You Must Know Now

Kansas City Southern (NYSE:KSU) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Kansas City Southern Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.94% to $0.96 in the quarter versus EPS of $0.85 in the year-earlier quarter.

Revenue: Rose 6.24% to $579.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kansas City Southern reported adjusted EPS income of $0.96 per share. By that measure, the company beat the mean analyst estimate of $0.95. It beat the average revenue estimate of $576.67 million.

Quoting Management: “Considering the weakness in grain volumes due to the drought in 2012, KCS reported impressive second quarter 2013 results as reflected by year-over-year increases in carloads (+ 3%), revenues (+ 6%) and adjusted earnings per share (+ 9%),” stated President and Chief Executive Officer David L. Starling. “The combination of solid revenue growth, a steady mid-single digit improvement to pricing and continued control over operating expenses resulted in a second quarter operating ratio of 69.0%, a 1.5 point improvement over last year’s adjusted operating ratio. This performance speaks to the strength of KCS’ operations and the diversity of the franchise.”

Key Stats (on next page)…