Kansas City Southern's stock drops after downbeat revenue outlook
Kansas City Southern's stock dropped 6.9% in active afternoon trade, after the railroad company provided a downbeat revenue outlook for the current quarter. Speaking at a Credit Suisse industrials conference, Chief Financial Officer Michael Upchurch said he expects fourth-quarter revenue to decline at a high single-digit percentage rate from a year ago. Meanwhile, the FactSet revenue consensus of $622 million implies a 3.3% decline. The company also disclosed at the conference that after a strong start to the quarter in October, intermodal volumes, which involves the transport of freight using multiple modes of transport, decelerated in November, to signal an end to the peak season. The stock, which was the biggest percentage loser among components of the Dow Jones Transportation Average , has tumbled 30% year to date, while the Dow tranports have shed 12% and the Dow Jones Industrial Average has slipped 0.5%.
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