Kinder Morgan Anticipates Stable Earnings Amidst Mixed Performance

Based in Houston, Texas, Kinder Morgan, Inc. (KMI) serves as a prominent midstream energy infrastructure provider in North America. The company manages pipelines for the transport of natural gas, crude oil, condensate, refined petroleum products, and more. With a market capitalization of $64.3 billion, Kinder Morgan operates through various segments, including Natural Gas Pipelines, Products Pipelines, Terminals, and CO2.

Quarterly Earnings Results Expected Soon

Kinder Morgan is set to announce its first-quarter earnings on Wednesday, April 16. Analysts forecast that KMI will report an adjusted earnings per share (EPS) of $0.34, mirroring that of the same quarter last year. However, the company has shown a mixed earnings surprise history. Over the past four quarters, KMI has missed the consensus bottom-line estimates twice, while exceeding or matching expectations on two other occasions. Notably, in the last reported quarter, an adjusted EPS of $0.32 fell short by 3% of analysts’ projections.

Full Fiscal Year Projections

Looking ahead, the expectation for the full fiscal year 2025 is an adjusted EPS of $1.28, which would represent an 11.3% increase from the $1.15 reported in fiscal 2024. For fiscal 2026, KMI’s adjusted earnings are projected to further rise by 3.9% year-over-year, reaching $1.33 per share.

Stock Performance Overview

In the past 52 weeks, Kinder Morgan’s stock has surged by 49.4%, showcasing a strong performance compared to the Energy Select Sector SPDR Fund (XLE), which has dropped by 10.7%, and the S&P 500 Index ($SPX), which has increased by only 3.6% in the same period.

Despite this annual gain, KMI’s stock dipped nearly 1% in the trading session following the release of its disappointing Q4 results on January 22. Kinder Morgan reported a 1.3% drop in revenues year-over-year, totaling nearly $4 billion, which was a notable miss of 4.1% against expectations. Although adjusted net income increased 11.8% year-over-year to $708 million, the adjusted EPS missed analysts’ projections significantly, causing investor concern.

In addition, Kinder Morgan’s stock fell 4.2% in the trading session the previous day, influenced by a broader market selloff.

Analyst Ratings and Sentiments

The overall consensus on KMI is moderately bullish, reflected in the “Moderate Buy” rating. Among the 18 analysts covering KMI’s stock, seven recommend a “Strong Buy,” one advises a “Moderate Buy,” and ten suggest a “Hold” rating.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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