Kansas City Southern provides downbeat revenue outlook as protests in Mexico weigh

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Kansas City Southern provided Tuesday a downbeat outlook for fourth-quarter revenue, as the rail road operator said protests blocking the Caltzontzin District in Mexico are hurting its volume and revenue performance. In a presentation for the Stephens Annual Investment Conference, the company said quarter to date, volume is down 3% from a year ago and revenue is down 6%, while the FactSet revenue consensus $696 million implies a 4.7% decline. Excluding the estimated impact of the protests, volume would be up 2% and revenue would be down 2%. The company expects to reinstate multi-year financial guidance in January. The company is projected to report fourth-quarter results on or around Jan. 15. The stock, which is still inactive in premarket trading, has rallied 23.0% year to date, while the Dow Jones Transportation Average has advanced 13.7% and the Dow Jones Industrial Average has gained 5.0%.
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