Kansas City Southern (KSU) Tops Q2 EPS by 1c
Tweet
Share
E-mailGet Alerts KSU Hot Sheet
Price: $293.59 --0%
Financial Fact:
Purchased services: 54.5M
Today's EPS Names:
CPSS, HARL, MCET, More
Financial Fact:
Purchased services: 54.5M
Today's EPS Names:
CPSS, HARL, MCET, More
Join SI Premium – FREE
Kansas City Southern (NYSE: KSU) reported Q2 EPS of $0.96, $0.01 better than the analyst estimate of $0.95. Revenue for the quarter came in at $579 million versus the consensus estimate of $579.3 million.
"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.
"Especially noteworthy was the performance of the Company’s Energy commodity group, which grew by 26%. Each subgroup within Energy experienced strong growth, highlighted by revenue increases of 193% in crude oil and 19% in utility coal. Revenue from KCS’ five strategic growth areas, namely crude oil, cross-border intermodal, automotive, frac sand and Lázaro Cárdenas, collectively grew by 28% in the second quarter and represented 19% of KCS’ second quarter 2013 freight revenues.
"In addition to the Company’s solid topline performance during the second quarter, KCS took advantage of its recent upgrade to investment grade status and a historically low interest rate environment to refinance approximately $1.2 billion of corporate debt. Among the benefits achieved by the refinancing was a reduction of the Company’s weighted-average coupon from 5.4% to 3.7%, the lowest among Class I railroads. In addition, KCS extended its weighted-average debt maturity to 14 years. These accomplishments, along with improved debt-to-capital, leverage and coverage ratios, significantly strengthen KCS’ balance sheet and provide the Company with expanded financial flexibility going forward."
For earnings history and earnings-related data on Kansas City Southern (KSU) click here.
"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.
"Especially noteworthy was the performance of the Company’s Energy commodity group, which grew by 26%. Each subgroup within Energy experienced strong growth, highlighted by revenue increases of 193% in crude oil and 19% in utility coal. Revenue from KCS’ five strategic growth areas, namely crude oil, cross-border intermodal, automotive, frac sand and Lázaro Cárdenas, collectively grew by 28% in the second quarter and represented 19% of KCS’ second quarter 2013 freight revenues.
"In addition to the Company’s solid topline performance during the second quarter, KCS took advantage of its recent upgrade to investment grade status and a historically low interest rate environment to refinance approximately $1.2 billion of corporate debt. Among the benefits achieved by the refinancing was a reduction of the Company’s weighted-average coupon from 5.4% to 3.7%, the lowest among Class I railroads. In addition, KCS extended its weighted-average debt maturity to 14 years. These accomplishments, along with improved debt-to-capital, leverage and coverage ratios, significantly strengthen KCS’ balance sheet and provide the Company with expanded financial flexibility going forward."
For earnings history and earnings-related data on Kansas City Southern (KSU) click here.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Equifax (EFX) shares tumble as Q2, full-year guidance falls short
- Equifax (EFX) Tops Q1 EPS by 6c, Misses on Revenue; Offers Guidance
- Old Second Bancorp (OSBC) Reports In-Line Q1 EPS
Create E-mail Alert Related Categories
Earnings, Management CommentsRelated Entities
Crude Oil, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
