Kansas City Southern Q3 Results Top View - Update

(RTTNews) - Transportation holding company Kansas City Southern (KSU) Friday said profit for the third quarter increased from the prior, along with higher revenues amid a 4 percent increase in carloads. Both earnings and revenues topped estimates. The stock added close to 5 percent in pre-market activity.

Net income available to common stockholders increased to $138.0 million or $1.25 per share from $118.3 million or $1.07 per share in the third quarter of 2013.

Excluding the impacts of foreign exchange rate fluctuations and debt retirement costs, adjusted earnings per share was $1.29, while it totaled $1.10 last year.

On average, 22 analysts polled by Thomson Reuters expected the company to report earnings of $1.26 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues grew to $677.5 million from $621.6 million in the prior year. Wall Street expected revenues of $671.77 million for the quarter.

The revenue growth was led by a 28 percent increase in Automotive and a 13 percent increase in Industrial & Consumer Products.

Revenue from Agriculture & Minerals advanced 8 percent to $104.6 million and Chemical & Petroleum revenue increased 7 percent to $117.4 million. However, Energy revenue declined 4 percent to $90.7 million amid a decline in utility coal and frac sand shipments.

Looking forward, CEO David Starling said, "We are optimistic about the remainder of the year and reaffirm our updated 2014 goals outlined to investors in September. Looking ahead, we expect KCS' long-term growth to be fueled by system-wide opportunities..."

KSU, which closed at $116.41 on Thursday, gained 4.8 percent in pre-market activity.