KSU

Regardless of the recession, Kansas City Southern once again beat analyst expectations in its third quarter.The company saw lower sales across all of its segments but benefited from a lower operating ratio and lower taxes.Shareholders were rewarded by high buybacks and dividends, and will more than likely see higher capital gains going forward.

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put...

Credit Suisse maintains Kansas City Southern (NYSE:KSU) with a Outperform and raises the price target from $198 to $201.

Kansas City Southern (KSU) catches an upgrade to start off the week.BMO Capital Markets moves to an Outperform stance after having KSU slotted at Market Perform."We believe that KSU's network

Shares of Kansas City Southern closed 2.7% lower on Friday after the transportation company reported lower-than-expected 3Q revenues. Its revenues dropped 12% to $659.6 million lagging the Street consensus of $662.7 million. The sales decline was due to lower carload volumes, lower commodity prices, lower fuel surcharge, and unfavourable currency, the company said.Meanwhile, Kansas City's (KSU) 3Q EPS of $1.96 increased from $1.94 a year ago and exceeded analysts’ expectations of $1.90.The company anticipates 2020 EPS to be slightly higher on a year-over-year basis and expects adjusted operating ratio to be at the low end of the 60% to 61% range. It reiterated its 2020 capital expenditure guidance of a maximum of $425 million and expects its 2020 free cash flow to be approximately $550 million.Kansas City’s CEO Patrick J. Ottensmeyer said "Our service was tested this quarter with an unprecedented volume recovery and two hurricanes that struck the heart of our network.” Ottensmeyer added that “KCS responded by steadfastly executing the lessons learned in its Precision Scheduled Railroading (PSR) implementation, which included aligning resources with rapidly increasing demand while maintaining a keen focus on preserving efficiencies created from PSR principles.” (See KSU stock analysis on TipRanks).On Oct. 18, BMO Capital analyst Fadi Chamoun upgraded KSU to Buy from Hold and lifted the price target to $205 (14.5% upside potential) from $200. The analyst said that the company's network offers "significant" volume growth opportunities and has lesser growth hurdles than other U.S. rail networks.” The 5-star analyst also added that the implementation of PSR enables growth at a very low incremental cost, which will support margins and earnings growth in the coming years. He expects productivity gains and the improving demand scenario to drive the stock’s multiple higher.Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 7 Buys and 8 Holds. The average price target of $188.33 implies upside potential of about 5.2% to current levels. Shares have increased by 16.9% year-to-date.Related News: Cars.com Soars 26% On Strong 3Q Sales Outlook, Analyst Upgrade Marten Transport Sinks 8% After-Hours On 3Q Revenue Miss Intuitive Surgical Plunges 4% Despite 3Q Earnings Beat More recent articles from Smarter Analyst: * Ally Financial Tops 3Q Estimates; Street Remains Bullish * Visa Nabs Strategic Stake In UK Fintech Company GPS * United Airlines Adds 8 New Routes To Boost Latin America Presence * Nokia Picked By NASA For Moon’s First-Ever Cellular Network

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"Across our industrial and consumer economy, we think it's going to continue to be modestly strong from this point through the end of the year," Kansas City Southern CEO Patrick Ottensmeyer told CNBC.

Patrick Ottensmeyer, CEO of Kansas City Southern, joins "Closing Bell" to discuss the company's Q3 earnings and the recovery from the start of the pandemic. Our volumes in the second quarter fell by 20 percent, says Ottensmeyer. We reached a plateau for a few weeks. And then we came back and increased by 30 percent from below for the third quarter. So this was really a rollercoaster he adds.