KSU Stock – Kansas City Southern Dives After Earnings Miss

Falling coal shipments hurt sales

   

KSU Stock – Kansas City Southern Dives After Earnings Miss

Railroad operator Kansas City Southern (KSU) disappointed Wall Street with lower-than-expected quarterly earnings, sending KSU stock tumbling more than 13% in Friday morning trading.

10632418 moving freight 300x142 KSU Stock   Kansas City Southern Dives After Earnings Miss
Source: iStockphoto

KSU stock was pounded after the company posted $615.6 million in sales during the fourth quarter. Analysts had forecast sales of $618.6 million for the quarter. EPS came in at $1.03, which also fell short of analysts’ estimates of a profit of $1.09 per share of KSU stock, Bloomberg noted.

 KSU Stock   Kansas City Southern Dives After Earnings Miss
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Declining coal shipments have dented KSU sales. Energy producers have been moving away from coal under pressure from cheaper natural gas prices and rising regulatory restrictions on coal-fired power plants.

KSU stock wasn’t the only railroad stock moving lower on Friday.  Union Pacific (UNP) fell 1% while Norfolk Southern (NSC) and CSX (CSX) both dropped more than 2% in a downward-trending market.

Prior to Friday trading, KSU stock had climbed about 25% over the past year. KSU stock closed at $117.28 a share on Thursday.


Article printed from InvestorPlace Media, http://investorplace.com/2014/01/ksu-stock-kansas-city-southern-dives-earnings-miss/.

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