Kansas City Southern Down 8% After Reporting Q4 Earnings

Kansas City Southern KSU is trading lower on the session after yesterday's earnings announcement. The company reported Q4 EPS $1.01 vs $0.79 estimate and revenues of $530.3 million vs $549.70 million estimate. David L. Starling, CEO of KCS said: "For the first time in our railroad's 125 years, we attained over $2 billion in revenue and 2 million in carloads. During the fourth quarter, using available cash, KCS redeemed the entire $123.5 million aggregate principal amount of KCSR's 13% Senior Notes. These notes were issued in December 2008 at the height of the global financial credit crisis, and to accomplish this in only three years speaks to the Company's significantly improved financial strength. During 2011, we further levered our stronger financial position to improve liquidity, increasing revolver capacity by $175 million and extending revolver maturities." Kansas City Southern is currently trading at $66.51, a loss of $5.81 or 8.03%.