8. Kansas City Southern (KSU) is a holding company with domestic and international rail operations in North America with major focus on the north/south freight corridor connecting key commercial and industrial markets in central U.S. with industrial cities in Mexico.
Revenue for the fourth quarter was up 18% and operating ratio stood at a record high 71.8%. Net income for the quarter surged 62.7% to $52 million. For full-year 2010, revenue was up 23%, while net income soared 164.3% to $180 million.
The company recently declared a regular quarterly dividend of 25 cents per share, payable April 5, 2011, on its outstanding 4% non-cumulative preferred stock. Further, the company paid $12.8 per share on the outstanding 5.125% cumulative convertible perpetual preferred stock. Going forward, the company estimates to achieve low double-digit revenue growth in 2011.Of the 19 analysts covering the stock, 68% recommend a buy while the remaining rate a hold. There are no sell ratings on the stock. Data from Bloomberg has analysts estimating an 8.9% gain for the stock to $58.8 in value from current levels.
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