Kinder Morgan Set to Release Q4 Earnings: What Analysts Expect
Profit Predictions and Historical Performance
Houston, Texas-based Kinder Morgan, Inc. (KMI) is a key player in North America’s midstream energy infrastructure. The company manages pipelines that transport natural gas, crude oil, condensate, and refined products, boasting a market cap of $60.4 billion. Kinder Morgan’s operations span Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments. Investors are keenly awaiting the company’s fourth-quarter earnings report, scheduled for Wednesday, Jan. 15.
Analysts forecast an adjusted profit of $0.33 per share for Kinder Morgan, representing a 17.9% increase from the $0.28 per share reported in the same quarter last year. Over the past year, the company has matched or exceeded Wall Street’s earnings estimates twice while falling short on two occasions. For the last quarter, Kinder Morgan’s adjusted EPS was flat at $0.25, missing analyst expectations by 7.4%.
Future Expectations and Growth Projections
Looking ahead to fiscal 2024, analysts expect Kinder Morgan to achieve an adjusted EPS of $1.17, a 9.4% rise from $1.07 in fiscal 2023. Projections for fiscal 2025 indicate further growth, with EPS estimated to reach $1.27, up 8.6% year-over-year.
KMI stock has surged 55.1% over the past year, significantly outperforming the Energy Select Sector SPDR Fund (XLE) and the S&P 500 Index ($SPX), which rose by 23.8% during the same period.
Challenges and Financial Health
After releasing its third-quarter earnings on Oct. 16, Kinder Morgan’s stock experienced a slight decline due to missing Wall Street’s revenue and profit expectations. The company faced challenges in its Products Pipeline segment from lower commodity prices, and the CO2 segment was affected by decreased crude volumes and rising power costs. As a result, revenues dipped 5.3% year-over-year to $3.7 billion.
Despite these hurdles, Kinder Morgan demonstrated strong expense management. Its adjusted net margin improved by 67 basis points from a year ago, reaching 15.1%, which helped keep adjusted net income for shareholders stable at $557 million.
Analyst Opinions on KMI Stock
The consensus outlook for KMI stock is moderately optimistic, with an overall “Moderate Buy” rating. Among the 18 analysts covering Kinder Morgan, six recommend a “Strong Buy,” one advises a “Moderate Buy,” and eleven suggest a “Hold” rating. Currently, KMI is trading slightly above its average price target of $27.
On the date of publication, Aditya Sarawgi did not hold positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
