Kansas City Southern’s KSU third-quarter 2018 earnings (excluding 13 cents from non-recurring items) of $1.57 fell short of the Zacks Consensus Estimate of $1.58 per share. The bottom line, however, expanded 16.3% on a year-over-year basis.The company reported revenues of $699 million, which fell short of the Zacks Consensus Estimate of $707.1 million. However, the top line improved 6.5% on a year-over-year basis. The year over year revenue growth was due to a 4% rise in overall carload volumes.In the quarter, adjusted operating income increased 9% to $256 million. Kansas City Southern’s operating ratio (operating expenses as a percentage of revenues) was 63.4% compared with 64.4% reported a year ago. Improvement in this key metric is a positive for the company.Kansas City Southern Price, Consensus and EPS Surprise Kansas City Southern Price, Consensus and EPS Surprise | Kansas City Southern QuoteSegment ResultsThe Chemical & Petroleum segment generated revenues of $160.6 million, up 17% year over year. Volumes improved 15% year over year. Revenues per carload also improved 2% from the prior-year quarter.The Industrial & Consumer Products segment generated revenues of $152.5 million, flat year over year. While business volumes decreased 1%, revenues per carload increased 1% year over year.The Agriculture & Minerals segment’s total revenue was $116.2 million, flat year over year. While business volumes declined 2%, revenues per carload were up 2% both on a year-over-year basis.The Energy segment generated revenues of $73.2 million, down 2% year over year. Disappointing performances at the Utility Coal and Frac Sand units hurt the segment’s results. While business volumes decreased 8% year over year, revenues per carload rose 7%.Intermodal revenues were $100 million, up 8% year over year. While business volumes improved 7%, revenues per carload increased 1% in the reported quarter.Revenues at the Automotive segment came in at $66.2 million, up 8% year over year. Both business volumes and revenues per carload increased 4% on a year-over-year basis.Other revenues totaled $30.3 million, up 32% year over year.Zacks RankKansas City Southern carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Upcoming ReleasesInvestors interested in the railroad space also keenly await third-quarter earnings reports from key players like Canadian National Railway Co. CNI, Norfolk Southern Corp. NSC and Genesee & Wyoming Inc. GWR in the coming days. While Canadian National and Norfolk Southern are scheduled to report on Oct 23 and Oct 24, respectively, Genesee & Wyoming will report on Nov 9.Today's Stocks from Zacks' Hottest StrategiesIt's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.See Them Free>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Canadian National Railway Company (CNI): Free Stock Analysis Report Genesee & Wyoming, Inc. (GWR): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research