Published May 21, 2015
Kansas City Southern cut its full-year revenue outlook and provided weak guidance as it deals with slow growth from energy customers as prices in that sector remain depressed.
The railroad operator now expects low single-digit revenue growth for the year, reduced from the mid-single-digit growth. It also expects flat revenue in the current quarter.
Other factors in the guidance reduction include the weakening of the Mexican peso versus the dollar and lower fuel surcharge revenues driven by lower fuel prices.
Analysts surveyed by FactSet forecast annual revenue of $2.72 billion, which represents growth of 5.7 percent from last year. For the first quarter, analysts expect revenue of $639.1 million, which would be up 5.2 percent from the 2014 first quarter.
Shares of the Kansas City, Missouri-based company fell $8.55, or 7.4 percent, to $107.14 in morning trading.
https://www.foxnews.com/us/kansas-city-southern-cuts-outlook-gives-weak-guidance-because-of-slow-energy-industry-growth