Wed, Jan. 13, 3:54 PM
- The transportation sector is down sharply across the board on broad macroeconomic concerns.
- Airline decliners include SkyWest (SKYW -6.9%), Spirit Airlines (SAVE -6.1%), United Continental (UAL -5.5%), Southwest Airlines (LUV -5.3%), and American Airlines (AAL -4.6%).
- Railroad movers include CSX (CSX -5.5%), Norfolk Southern (NSC -5.9%), Genesee & Wyoming (GWR -6.3%), Canadian Pacific (CP -5.6%), and Kansas City Southern (KSU -4.1%).
Dec. 4, 2015, 2:57 PM
- Railroad stocks are broadly lower following Norfolk Southern's (NSC -1.2%) sharp rebuke of Canadian Pacific Railway's (CP -4.5%) takeover bid "at any price" and a BofA Merrill Lynch negative research note on the sector.
- CEO James Squires tells Bloomberg that NSC execs “haven’t talked to a single customer that supports the idea" of merging with CP, and that “our customers’ responses range from highly skeptical to vehemently opposed."
- Citing volume declines and weak trends that look to continue into 2016, BofA downgrades CSX (CSX -1.3%) and Union Pacific (UNP -1.2%) to Neutral from Buy, as the firm remains negative on rails with significant coal exposure, and cuts Kansas City Southern (KSU -1.5%) and Genesee & Wyoming (GWR -5.3%) to Underperform from Neutral; the firm lowers KSU due to its growth premium in an environment of slowing growth and cut GWR due to its commodity exposure.
- BofA reiterates its Buy rating on Canadian National (CNI -1.2%), citing CNI's significantly lower coal exposure, robust intermodal share gains and attractive risk/reward returns.
Dec. 2, 2015, 12:17 PM
- Transportation stocks are lower on the day on some broad macroeconomic concerns. Some BAML downgrades in the sector are also weighing on sentiment.
- Trading is notably weak in CXS Corp (CSX -2.3%), American Railcar Industries (ARII -2.6%), Kansas City Southern (KSU -1.9%), YRC Worldwide (YRCW -5.7%), Heartland Express (HTLD -3.7%), Swift Transportation (SWFT -3%), FedEx (FDX -0.9%), UPS (UPS -0.5%), Air Transport Services (ATSG -1.7%), and Matson (MATX -2.5%).
- A notable exception to the sector slide is airline stocks which are showing strength after Delta Air Lines (DAL +2.7%) reported some eye-opening capacity constraint. The major carrier increased passenger revenue per available seat mile sand load factor during November. A 3% decline in crude oil prices is also factoring in to the rally in airline stocks.
- United Continental (UAL +3.2%), Hawaiian Holdings (HA +2.9%), Southwest Airlines (LUV +2.3%), and Republic Airways Holdings (RJET +4.4%) are all solidly higher.
- The Dow Jones Transportation Average is down 0.8% off the conflicting forces of gravity.
- Related ETFs: IYT, XTN, JETS.
Nov. 9, 2015, 2:10 PM
- Shares of Norfolk Southern (NSC +12.2%) and Canadian Pacific (CP +6%) spike on reports the companies are considering a merger.
- The speculation is giving a lift to a good portion of the sector with CSX (CSX +3.7%), Union Pacific (UNP +2.2%), and Kansas City Southern (KSU +2.9%) all notable movers.
- Railroad M&A talk has picked up this year as some market caps have moved down.
Oct. 27, 2015, 3:29 PM
- Railroad and trucking stocks are down today on a mix of news seen as negative for the transportation sector. UPS reported lower package volume in Q3 and durable-goods orders fell in September.
- Decliners include Norfolk Southern (NSC -3.6%), Union Pacific (UNP -5.1%), CSX Corporation (CSX -3.8%), Kansas City Southern (KSU -4.4%), Canadian Pacific(CP -5.4%), Canadian National Railway (CNI -3.9%), Genesee & Wyoming (GWR -5.3%), XPO Logistics (XPO -11.8%), Echo Global Logistics (ECHO -12.6%), C.H. Robinson Worldwide (CHRW -2.8%), Radiant Logistics (RLGT -7.9%), FedEx (FDX -1.4%), Air T (AIRT -5.9%), and Air Transport Services (ATSG -3.2%).
- The iShares Dow Jones Transportation ETF (NYSEARCA:IYT) is down 2.7%.
- Related: Tough day for four wheelers (Oct. 27)
Aug. 27, 2015, 3:58 PM
- Kansas City Southern (KSU +3.9%) is upgraded to Hold from Sell at Stifel, believing the stock has been sufficiently beaten down and is now fully valued.
- The firm says its previous rating had been based on poor company guidance related to overly optimistic expectations in oil, auto and intermodal, but the story has fully played out and KSU eventually could become "interesting" as those stories turn around.
- Railroads are broadly higher today: CSX +4.9%, NSC +5.1%, UNP +3.2%, GWR +6.6%, CNI +3.1%, CP +5.5%.
- Earlier: Stifel Nicolaus sees upside for CSX
Aug. 20, 2015, 10:11 AM
- Believing the company will be pressured by declining coal volumes and that its valuation still isn't cheap, Macquarie's Cleo Zagrean has downgraded Union Pacific (UNP -2.4%) to Neutral.
- Zagrean: "We now no longer expect that UNP will be able to achieve its 60+/- by full year '19 OR target ahead of time, and see further downside to our growth outlook if in fact more than 50% of the upcoming gas capacity translates into coal displacement rather than feeding new electric demand growth." 2016 and 2017 estimates have been cut by 2%-4%.
- At the same time, Zagrean has upgraded Kansas City Southern (KSU -0.8%) to Outperform, arguing it's the only railroad still seeing double-digit growth. "KSU becomes our top pick in US rail given the superior growth profile in a space where we continue to see mid single digit downside to LT EPS expectations. We would also pair KSU long against UNP short or GWR short given the potential for earnings surprises and the relative resilience of valuation multiples." His 2017 EPS estimate has been raised by 2%.
Jun. 24, 2015, 11:16 AM
- Select railroad and trucking stocks trade weak after Q1 GDP figures are revised in-line with expectations. A read yesterday on durable goods was weak.
- Stocks from the transportation sector drifting lower include Knight Transportation (KNX -4.5%), Swift Transportation (SWFT -5.5%), ArcBest (ARCB -3.9%), YRC Worldwide (YRCW -2.2%), Greenbrier (GBX -1.6%), Heartland Express (HTLD -2.6%), Kansas City Southern (KSU -2.2%), Celadon Group (CGI -2%), JB Hunt Transport (JBHT -2.1%), Trinity Industries (TRN -1.6%).
- FedEx (FDX -0.9%) and UPS (UPS -0.8%) are also trailing broad market averages.
May 14, 2015, 9:30 AM
- Kansas City Southern (NYSE:KSU) trades lower after withdrawing 2015 guidance.
- The company released the information at the Bank of America Merrill Lynch Transportation Conference where execs warned on uncertainty in the energy markets and F/X volatility.
- KSU -2.8% premarket.
Apr. 21, 2015, 9:27 AM
- Kansas City Southern (NYSE:KSU) reports adjsuted operating margin fell 12 bps to 31.14% in Q1.
- Revenue by segment: Chemical & Petroleum: $114.8M (+9.0%); Industrial & Consumer Products: $146M (-2.0%); Agriculture & Minerals: $105.6M (-7.0%); Energy: $66.6M (-15.0%); Intermodal: $95M (+8.0%); Automotive: $54.4M (+4.0%).
- Total carload volume rose by 1% to 540.2K during the period.
- Revenue per carload/unit declined 2.0% to $1,078.
- KSU -2.21% premarket.
Mar. 23, 2015, 8:31 AM
- Kansas City Southern (NYSE:KSU) revises full-year 2015 guidance.
- The railroad operator expects low single-digit revenue after originally seeing growth at a mid single-digit rate.
- The guidance revision is due in part to a drop in energy market transport volume.
- F/X and a drop-off in fuel surcharge revenue are also expected to be factors in Q1 and beyond.
- KSU -4.24% premarket to $110.79.
Jan. 23, 2015, 8:35 AM
- Kansas City Southern (NYSE:KSU) reports operating margin rose 143 bps to 33.29% in Q4.
- Revenue by segment: Chemical & Petroleum: $115.3M (+8.98%); Industrial & Consumer Products: $151.1M (+1.07%); Agriculture & Minerals: $113.7M (-4.53%); Energy: $76.5M (+8.66%); Intermodal: $102.4 (+8.47%); Automotive: $60.6M (+13.27%).
- Total carload volume rose by 5% to 569.8K during the period.
- Revenue per carload/unit declined 0.28% to $1,087.
- KSU -1.78% premarket.
Dec. 8, 2014, 3:20 PM
- Another tough day for railroad stocks as oil prices slide again.
- There's been some brave talk that the railroad sector has already seen the developments in the oil industry factored into share prices, but today's action indicates concerns on crude transport is still a concern.
- Decliners: Canadian Pacific (NYSE:CP) -5.5%, Canadian National Railway (NYSE:CNI) -1.7%, Genesee & Wyoming (NYSE:GWR) -2.9%, Kansas City Southern (NYSE:KSU) -2.7%, Union Pacific (NYSE:UNP) -3.1%, CSX Corporation (NYSE:CSX) -2.8%, Norfolk Southern (NYSE:NSC) -3.5%, Pioneer Railcorp (OTCPK:PRRR) -4.3%.
Nov. 28, 2014, 12:05 PM
Oct. 17, 2014, 9:16 AM
- Kansas City Southern (NYSE:KSU) trades higher after reporting strong Q3 results.
- Total carload volume rose by 4% during the period.
- Revenue by segment: Automotive +28%, Industrial/Consumer Products +13%, Intermodal +11%, Chemical/Petroleum +7%, Energy -4%.
- KUS +3.5% premarket.
Oct. 13, 2014, 10:08 AM
- There's some bets being placed on M&A activity within the railroad sector after a weekend report of interest by Canadian Pacific in CSX (CSX +12.6%) stirs the pot.
- Gainers: Norfolk Southern (NYSE:NSC) +5.1%, Kansas City Southern (NYSE:KSU) +4.2%, Canadian Pacific (NYSE:CP) +3.2%, Union Pacific (NYSE:UNP) +1.0%, Canadian National Railway (NYSE:CNI) +1.3%.
Kansas City Southern is a holding company with domestic and international rail operations in North America that are strategically focused on the growing north/south freight corridor connecting key commercial and industrial markets in the central United States with major industrial cities in... More
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