Shares of Kansas City Southern fell 1.9% in morning trading Tuesday, enough to pace the Dow Jones Transportation Average’s decliners, after the railroad company provided a downbeat first-quarter revenue outlook. The company said it expects both volume and revenue for the current quarter to be down 4% from the same period a year ago, while the current FactSet revenue consensus of $724 million implies a 1.1% decline. The company said volume was being impacted by soft intermodal volumes in Mexico in January, a global microchip shortage which was driving automotive production cuts and cold weather in February, which saw volumes fall 8% and revenue drop 9%. For 2021, the company expects revenue growth in the “double-digit” percentage range, while the current FactSet revenue consensus of $2.97 billion implies 12.8% growth. The stock has climbed 12.0% over the past three months, while the Dow transports has advanced 8.3% and the Dow Jones Industrial Average has gained 5.4%.

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