Kansas City Southern (KSU 93.00, +2.43) has risen 2.7% in pre-market after modestly beating first quarter expectations. Including its pre-market advance, the stock is now up 8.4% so far in 2017.
The rail carrier reported above-consensus earnings of $1.17 per share on an 8.3% year-over-year increase in revenue to $609.50 million, which also exceeded expectations. Broadly speaking, the results showed a rebound from a soft first quarter of 2016.
Overall carload volumes increased 6.0% year-over-year to 541,000.
The company saw revenue growth in most segments while Intermodal revenue declined 2.0% to $83.50 million and Industrial & Consumer revenue slipped 1.0% to $140.10 million. Lower revenue from forest products fueled the decline in Industrial & Commercial revenue.
On the upside, Chemical & Petroleum revenue rose 8.0% year-over-year to $126.50 million. Petroleum revenue jumped 11.0%, Chemicals revenue rose 9.0%, and Plastics revenue increased 3.0%.
Agriculture & Minerals total revenue grew 6.0% to $116.30 million. Increases in Food Products (+10.0%), Grain (+5.0%), and Stone, Clay & Glass (+3.0%) more than offset a decline in Ores & Minerals (-7.0%).
Energy revenue recorded the most notable increase, surging 64.0% to $69.00 million. Frac Sand revenue soared 110.0% to $10.70 million, Utility Coal revenue jumped 88.0% to $42.80 million, and Coke revenue increased 34.0% to $11.00 million. The increases were partially offset by a 24.0% decline in crude oil revenue.
Automotive revenue increased 25.0% to $51.30 million.
Operating income increased 12.0% year-over-year to $211 million and operating ratio improved 1.2 points to 65.4%.