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Kansas City Southern Updates FY20 Guidance - Quick Facts

Kansas City Southern (KSU) said, for fiscal 2020, the company now expects adjusted earnings per share to be slightly higher on a year over year basis, and full-year 2020 adjusted operating ratio to be on the low end of the 60% to 61% range. The company expects free cash flow to be approximately $550 million in 2020.

Third quarter adjusted earnings per share was $1.96. On average, 21 analysts polled by Thomson Reuters expected the company to report profit per share of $1.90, for the quarter. Analysts' estimates typically exclude special items.

Third quarter revenues were $659.6 million, a decrease of 12% primarily resulting from lower volumes driven by a decline in demand due to COVID-19 and lower commodity prices, lower fuel surcharge, and unfavorable foreign currency impacts. Carload volumes were down 4% year-on-year. Analysts expected revenue of $662.69 million, for the quarter.

Kansas City Southern intends to enter into accelerated share repurchase agreements on or around October 16, 2020 for the repurchase of approximately $500 million of its outstanding shares. The company said this will be executed under the $2 billion share repurchase program.

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