Does the Street Have Kansas City Southern Figured Out?
Jul 12th 2012 12:34PM
Updated Jul 12th 2012 12:36PM
Kansas City Southern (NYS: KSU) is expected to report Q2 earnings on July 17. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Kansas City Southern's revenues will improve 6.5% and EPS will grow 19.7%.
The average estimate for revenue is $569.9 million. On the bottom line, the average EPS estimate is $0.85.
Last quarter, Kansas City Southern booked revenue of $547.5 million. GAAP reported sales were 12% higher than the prior-year quarter's $488.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.75. GAAP EPS of $0.68 for Q1 were 17% higher than the prior-year quarter's $0.58 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 37.7%, 220 basis points better than the prior-year quarter. Operating margin was 28.8%, 260 basis points better than the prior-year quarter. Net margin was 13.7%, 60 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $2.31 billion. The average EPS estimate is $3.47.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 420 members out of 434 rating the stock outperform, and 14 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Kansas City Southern a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kansas City Southern is outperform, with an average price target of $76.60.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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