Kansas City Southern (KSU) Shares Down 1.6% After Earnings Miss
Kansas City Southern (NYSE:KSU)’s share price dropped 1.6% on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $92.74 and last traded at $93.18, with a volume of 1,423,459 shares changing hands. The stock had previously closed at $94.71.
The company reported $1.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.22 by $0.10. The company earned $605 million during the quarter, compared to analyst estimates of $411.30 million. Kansas City Southern had a net margin of 21.13% and a return on equity of 12.00%. The company’s revenue was down 4.3% on a year-over-year basis. During the same period in the prior year, the company earned $1.21 earnings per share.
The business also recently declared a quarterly dividend, which was paid on Wednesday, October 5th. Investors of record on Monday, September 12th were issued a $0.33 dividend. The ex-dividend date was Thursday, September 8th. This represents a $1.32 annualized dividend and a yield of 1.39%. Kansas City Southern’s dividend payout ratio is presently 28.82%.
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KSU has been the topic of several recent analyst reports. Bank of America Corp. reaffirmed a “buy” rating on shares of Kansas City Southern in a report on Tuesday, July 12th. Citigroup Inc. reiterated a “buy” rating and set a $108.00 target price on shares of Kansas City Southern in a research note on Wednesday, July 6th. Zacks Investment Research upgraded shares of Kansas City Southern from a “hold” rating to a “buy” rating and set a $105.00 target price for the company in a research note on Wednesday, August 3rd. Loop Capital reiterated a “buy” rating and set a $115.00 target price on shares of Kansas City Southern in a research note on Monday, August 15th. Finally, BMO Capital Markets reiterated a “market perform” rating and set a $98.00 target price on shares of Kansas City Southern in a research note on Tuesday, October 4th. One equities research analyst has rated the stock with a sell rating, eleven have issued a hold rating, ten have given a buy rating and one has given a strong buy rating to the stock. Kansas City Southern presently has a consensus rating of “Hold” and a consensus price target of $100.92.
In other Kansas City Southern news, SVP William J. Wochner sold 26,521 shares of the company’s stock in a transaction dated Wednesday, July 20th. The shares were sold at an average price of $98.32, for a total transaction of $2,607,544.72. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider David L. Starling sold 5,100 shares of the company’s stock in a transaction dated Wednesday, July 20th. The shares were sold at an average price of $98.88, for a total transaction of $504,288.00. The disclosure for this sale can be found here. Company insiders own 0.86% of the company’s stock.
A number of hedge funds have recently bought and sold shares of the stock. Winslow Capital Management LLC purchased a new stake in Kansas City Southern during the second quarter worth approximately $261,621,000. Emerald Acquisition Ltd. purchased a new stake in Kansas City Southern during the second quarter worth approximately $80,949,000. Bridger Management LLC purchased a new stake in Kansas City Southern during the first quarter worth approximately $56,586,000. Nomura Holdings Inc. raised its stake in Kansas City Southern by 10,267.3% in the second quarter. Nomura Holdings Inc. now owns 417,699 shares of the company’s stock worth $37,740,000 after buying an additional 413,670 shares in the last quarter. Finally, Coronation Fund Managers Ltd. purchased a new stake in Kansas City Southern during the second quarter worth approximately $32,489,000. 91.30% of the stock is owned by institutional investors.
The stock has a market capitalization of $10.07 billion, a P/E ratio of 20.29 and a beta of 1.14. The company’s 50 day moving average price is $93.33 and its 200-day moving average price is $92.92.
About Kansas City Southern
Kansas City Southern (KCS) is a transportation holding company with 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 controls and owns The Kansas City Southern Railway Company (KCSR), a United States Class I railroad that serves a 10-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 several key ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi and Texas.
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