Kansas City Southern (NYSE:KSU) Expected to Announce Earnings of $1.79 Per Share

Brokerages forecast that Kansas City Southern (NYSE:KSU) will announce earnings of $1.79 per share for the current quarter, according to Zacks. Four analysts have issued estimates for Kansas City Southern’s earnings, with estimates ranging from $1.73 to $1.83. Kansas City Southern posted earnings per share of $1.57 in the same quarter last year, which would suggest a positive year over year growth rate of 14%. The company is expected to announce its next quarterly earnings report on Friday, October 18th.

On average, analysts expect that Kansas City Southern will report full year earnings of $6.74 per share for the current fiscal year, with EPS estimates ranging from $6.60 to $6.82. For the next year, analysts expect that the firm will report earnings of $7.69 per share, with EPS estimates ranging from $7.52 to $7.95. Zacks’ EPS calculations are a mean average based on a survey of analysts that that provide coverage for Kansas City Southern.

Kansas City Southern (NYSE:KSU) last released its quarterly earnings data on Friday, July 19th. The transportation company reported $1.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.60 by $0.04. The firm had revenue of $714.00 million for the quarter, compared to analyst estimates of $704.55 million. Kansas City Southern had a return on equity of 12.45% and a net margin of 20.35%. The business’s revenue for the quarter was up 4.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.54 earnings per share.

Several analysts have issued reports on the company. Loop Capital upped their price objective on Kansas City Southern to $144.00 and gave the company a “buy” rating in a research note on Monday, July 22nd. Cascend Securities lowered Kansas City Southern from a “buy” rating to a “hold” rating in a research note on Wednesday, July 17th. Cowen set a $136.00 target price on Kansas City Southern and gave the stock a “buy” rating in a research note on Friday, July 19th. JPMorgan Chase & Co. increased their target price on Kansas City Southern from $130.00 to $136.00 and gave the stock a “neutral” rating in a research note on Monday, July 22nd. Finally, Morgan Stanley increased their target price on Kansas City Southern from $111.00 to $121.00 and gave the stock an “equal weight” rating in a research note on Monday, July 22nd. Six investment analysts have rated the stock with a hold rating, ten have given a buy rating and one has given a strong buy rating to the company. Kansas City Southern currently has a consensus rating of “Buy” and an average price target of $130.36.

NYSE:KSU traded up $0.61 on Friday, hitting $133.09. The company’s stock had a trading volume of 929,896 shares, compared to its average volume of 1,032,546. The company has a current ratio of 0.79, a quick ratio of 0.59 and a debt-to-equity ratio of 0.47. The stock has a fifty day moving average of $123.06 and a two-hundred day moving average of $119.65. The firm has a market capitalization of $13.30 billion, a P/E ratio of 22.29, a price-to-earnings-growth ratio of 1.32 and a beta of 0.92. Kansas City Southern has a one year low of $90.55 and a one year high of $133.74.

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 2nd. Stockholders of record on Monday, September 9th will be paid a dividend of $0.36 per share. The ex-dividend date is Friday, September 6th. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.08%. Kansas City Southern’s dividend payout ratio (DPR) is currently 24.12%.

In related news, EVP Warren K. Erdman sold 6,840 shares of the stock in a transaction that occurred on Wednesday, September 4th. The stock was sold at an average price of $127.39, for a total transaction of $871,347.60. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Lu M. Cordova sold 1,000 shares of the stock in a transaction that occurred on Friday, July 26th. The stock was sold at an average price of $124.50, for a total value of $124,500.00. Following the sale, the director now directly owns 1,032 shares in the company, valued at approximately $128,484. The disclosure for this sale can be found here. In the last quarter, insiders have sold 11,730 shares of company stock worth $1,482,378. 0.82% of the stock is owned by corporate insiders.

Large investors have recently modified their holdings of the stock. Rehmann Capital Advisory Group grew its position in Kansas City Southern by 81.3% during the second quarter. Rehmann Capital Advisory Group now owns 223 shares of the transportation company’s stock worth $27,000 after buying an additional 100 shares in the last quarter. Berman Capital Advisors LLC grew its position in Kansas City Southern by 164.8% during the second quarter. Berman Capital Advisors LLC now owns 241 shares of the transportation company’s stock worth $29,000 after buying an additional 150 shares in the last quarter. HM Payson & Co. acquired a new stake in Kansas City Southern during the second quarter worth approximately $32,000. Covington Capital Management acquired a new stake in Kansas City Southern during the second quarter worth approximately $37,000. Finally, Thor Advisors LLC acquired a new stake in Kansas City Southern during the first quarter worth approximately $37,000. 87.12% of the stock is currently owned by institutional investors and hedge funds.

Kansas City Southern Company Profile

Kansas City Southern, a transportation holding company, provides domestic and international rail transportation services in North America. The company serves a ten-state region in the midwest and southeast regions of the United States and has the shortest north/south rail route between Kansas City, Missouri, and ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi, and Texas.

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