Seaport Global Securities Weighs in on Kansas City Southern’s FY2018 Earnings (KSU)

Kansas City Southern (NYSE:KSU) – Equities research analysts at Seaport Global Securities reduced their FY2018 EPS estimates for Kansas City Southern in a research note issued to investors on Thursday, September 27th, Zacks Investment Research reports. Seaport Global Securities analyst M. Levin now forecasts that the transportation company will post earnings of $6.05 per share for the year, down from their prior estimate of $6.15. Seaport Global Securities also issued estimates for Kansas City Southern’s Q4 2018 earnings at $1.64 EPS, FY2019 earnings at $7.05 EPS and FY2020 earnings at $7.75 EPS.

Kansas City Southern (NYSE:KSU) last released its quarterly earnings data on Friday, July 20th. The transportation company reported $1.54 EPS for the quarter, beating the consensus estimate of $1.52 by $0.02. The business had revenue of $682.40 million during the quarter, compared to the consensus estimate of $686.12 million. Kansas City Southern had a net margin of 36.91% and a return on equity of 12.01%. The business’s revenue was up 4.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.33 EPS.

KSU has been the topic of several other reports. Deutsche Bank upped their target price on shares of Kansas City Southern from $119.00 to $120.00 and gave the company a “hold” rating in a research report on Thursday, September 27th. Zacks Investment Research upgraded shares of Kansas City Southern from a “sell” rating to a “hold” rating in a research report on Friday, October 5th. Cowen restated a “hold” rating and set a $124.00 target price on shares of Kansas City Southern in a research report on Monday, July 23rd. Loop Capital upped their target price on shares of Kansas City Southern to $140.00 and gave the company a “buy” rating in a research report on Tuesday, August 28th. Finally, Morgan Stanley upped their target price on shares of Kansas City Southern from $106.00 to $108.00 and gave the company a “$111.08” rating in a research report on Monday, July 23rd. Six analysts have rated the stock with a hold rating, five have issued a buy rating and one has issued a strong buy rating to the stock. Kansas City Southern has an average rating of “Buy” and a consensus target price of $123.33.

Shares of NYSE KSU traded down $0.38 during mid-day trading on Friday, hitting $102.57. 1,737,474 shares of the company’s stock traded hands, compared to its average volume of 1,152,000. The company has a current ratio of 1.20, a quick ratio of 0.85 and a debt-to-equity ratio of 0.54. The stock has a market capitalization of $11.57 billion, a price-to-earnings ratio of 19.54, a P/E/G ratio of 1.43 and a beta of 0.82. Kansas City Southern has a 1 year low of $99.47 and a 1 year high of $120.34.

Institutional investors have recently bought and sold shares of the stock. Bank of Montreal Can increased its position in shares of Kansas City Southern by 81.6% during the third quarter. Bank of Montreal Can now owns 49,959 shares of the transportation company’s stock worth $5,660,000 after acquiring an additional 22,454 shares during the period. Busey Trust CO purchased a new position in shares of Kansas City Southern during the third quarter worth approximately $6,305,000. Gofen & Glossberg LLC IL increased its position in shares of Kansas City Southern by 1.6% during the third quarter. Gofen & Glossberg LLC IL now owns 135,443 shares of the transportation company’s stock worth $15,343,000 after acquiring an additional 2,081 shares during the period. DNB Asset Management AS increased its position in shares of Kansas City Southern by 10.5% during the third quarter. DNB Asset Management AS now owns 11,928 shares of the transportation company’s stock worth $1,351,000 after acquiring an additional 1,137 shares during the period. Finally, Manning & Napier Group LLC increased its position in shares of Kansas City Southern by 2.9% during the third quarter. Manning & Napier Group LLC now owns 19,994 shares of the transportation company’s stock worth $2,264,000 after acquiring an additional 569 shares during the period. 87.63% of the stock is currently owned by institutional investors.

In related news, VP Suzanne M. Grafton sold 729 shares of the stock in a transaction dated Wednesday, August 29th. The shares were sold at an average price of $119.78, for a total value of $87,319.62. Following the sale, the vice president now directly owns 10,580 shares of the company’s stock, valued at approximately $1,267,272.40. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Michael W. Upchurch sold 5,442 shares of the stock in a transaction dated Thursday, July 26th. The stock was sold at an average price of $116.77, for a total transaction of $635,462.34. Following the completion of the sale, the chief financial officer now directly owns 17,906 shares in the company, valued at $2,090,883.62. The disclosure for this sale can be found here. Insiders sold a total of 7,171 shares of company stock worth $841,712 over the last three months. 0.70% of the stock is currently owned by corporate insiders.

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 3rd. Investors of record on Monday, September 10th were given a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a yield of 1.40%. The ex-dividend date of this dividend was Friday, September 7th. Kansas City Southern’s dividend payout ratio (DPR) is currently 27.43%.

About Kansas City Southern

Kansas City Southern, through its subsidiaries, provides domestic and international rail transportation services in North America. It 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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