| Short-line share prices spiral upwards |
|---|
| Shares of short line railroads rose August 3 after Kansas City Southern became the third company in the sector to miss Wall Street’s second quarter expectations but report higher revenue and sound industry fundamentals, according to the Associated Press. Shares of Genesee & Wyoming Inc. rose 71 cents, or 2.8 percent, to close at $25.83 on the New York Stock Exchange. Genesee & Wyoming reported on August 1 that its profits rose sharply, although excluding the benefit of the sale of one business unit and the purchase of another its results missed Wall Street’s forecast. Analysts polled by Thomson Financial forecast 40 cents per share and Genesee & Wyoming delivered 35 cents per share, excluding the benefits. RailAmerica Inc. finished 6 cents higher at $9.87 on the Big Board. RailAmerica reported last week that its profit fell on restructuring and other costs, while revenue rose 13 percent. RailAmerica earned 20 cents per share in the quarter and analysts forecast 21 cents. Shares of Florida East Coast Industries Inc. gained $1.50, or 3.2 percent, to end the session at $48.15 on the NYSE. Florida East Coast releases its second quarter earnings Thursday. Analysts expect earnings of 21 cents per share. Much of the activity, however, could be traced to Kansas City Southern, which like almost the entire rail industry reported strong pricing gains and mostly higher volumes, particularly in the fast-growing coal segment. One exception was Genesee & Wyoming, which saw coal volumes decline because of plant maintenance and inclement weather but was able to offset the shortcoming through above-average pricing. Like their Class I peers, the short liners are also benefiting from fuel surcharges that aren’t likely to step back as oil prices |
Wish I had some chum to toss in with the bait!