Kansas City Southern Seeing Positive Growth

Kansas City Southern KSU saw a 193% increase in its operating income to $127M, above the estimate of $113M made by Dahlman Rose. Revenues continue to outgrow operating expenses (revenues grew 26% while operating costs grew 10%) and Dahlman has raised its EPS estimates $0.05 to $1.90 and $2.30. Dahlman maintains its "hold" rating, expecting volumes of operations continuing to remain strong. Kansas City Southern closed yesterday at $45.76.