by Christopher Freeburn | January 24, 2014 11:58 am
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.
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.
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.
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