Amid Take-Private Rumors, Is Kansas City Southern Stock a Buy?
With market speculation rife that railroad Kansas City Southern (NYSE: KSU) is generating intense buyout interest, the stock price was always likely to be volatile around its earnings report. However, instead of speculating on a bid, or even a rebid, let's focus on what makes the stock attractive to potential investors. There's a lot to like about the company, and the recent third-quarter earnings help to highlight that.
There are three things that investors need to focus on, and there was good news on all fronts in the report.
The company's revenue declined 12% on a year-over-year basis in the quarter as carload volumes fell 4%. However, under the circumstances it's actually a pretty decent result. To put it into context, management disclosed that carload volumes ended the third quarter some 60% up from the trough in early May. Moreover, there was a whopping negative-10% impact to revenue from unfavorable foreign exchange movements in the quarter.
Source Fool.com
