The company anticipates 2015 fourth quarter revenue to fall at a high single-digit percentage rate from the year-ago period, CFO Michael Upchurch said at a Credit Suisse (CS) industrials conference, MarketWatch reports.
FactSet analysts expect revenue to decline 3.3% from last year, MarketWatch notes.
Additionally, Kansas City Southern's intermodal volumes, which involves transporting freight with multiple methods, slowed in November to mark the end of peak season, according to MarketWatch notes.
Kansas City Southern is a transportation holding company based in Kansas City.
About 3.56 million shares of the company have been traded so far today, well above the average trading volume of roughly 1.85 million shares.
Separately, TheStreet Ratings team rates KANSAS CITY SOUTHERN as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
We rate KANSAS CITY SOUTHERN (KSU) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 46.10% is the gross profit margin for KANSAS CITY SOUTHERN which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 20.82% trails the industry average.
- The debt-to-equity ratio is somewhat low, currently at 0.61, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that KSU's debt-to-equity ratio is low, the quick ratio, which is currently 0.67, displays a potential problem in covering short-term cash needs.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.4%. Since the same quarter one year prior, revenues slightly dropped by 6.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- KANSAS CITY SOUTHERN' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, KANSAS CITY SOUTHERN increased its bottom line by earning $4.56 versus $3.18 in the prior year. For the next year, the market is expecting a contraction of 2.4% in earnings ($4.45 versus $4.56).
- The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the Road & Rail industry average. The net income has decreased by 4.7% when compared to the same quarter one year ago, dropping from $138.10 million to $131.60 million.
- You can view the full analysis from the report here: KSU