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Kansas City Southern earnings — What to know in markets Friday

Heidi Chung

Investors will get a pulse of the current state of the transportation industry when Kansas City Southern (KSU) reports quarterly results ahead of the opening bell on Friday.

The transports have been in focus this week after a mixed bag of quarterly reports. Trucking company J.B. Hunt (JBHT) kicked things off on a positive note with better-than-expected results; however, on Tuesday, rail giant CSX (CSX) spooked investors when it slashed its outlook and cited the ongoing trade war as having a negative impact on shipping volume. Thursday, Union Pacific also noted the impact from the trade war but managed to boost profits when it reported results.

Kansas City Southern’s report will shed more light on how the railroad companies have fared as the more than year-long trade war continues to put pressure on businesses. The Dow Jones Transportation Average (^DJT) has been lagging the Dow Jones Industrial Average (^DJI) since September of 2018. Shares of Kansas City Southern have soared 24% this year and have outperformed the broader market, which has jumped 20%.

Analysts polled by Bloomberg are expecting Kansas City Southern to report adjusted earnings of $1.61 per share on $706.23 million in revenue. The options market is implying a 3.7% one-day move in either direction following the report.

Meanwhile, American Express (AXP) will also deliver quarterly results ahead of the market open. The company is expected to report adjusted earnings of $2.03 per share on $10.86 billion in revenue.

Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

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