Kirby Corporation (KEX) reported first-quarter 2024 earnings of $1.19 per share, which beat the Zacks Consensus Estimate of 97 cents and improved 75% year over year. Total revenues of $808 million surpassed the Zacks Consensus Estimate of $784.4 million and improved 7.6% year over year.
Total costs and expenses (on a reported basis) grew 2.5% year over year to $706.49million.
Kirby Corporation Price, Consensus and EPS Surprise
Kirby Corporation price-consensus-eps-surprise-chart | Kirby Corporation Quote
Segmental Performance
The company operates via two segments, namely, marine transportation, and distribution and services.
Revenues in the marine transportation unit improved 15.3% year over year to $475.41 million. Operating margin improved to 17.5% from 10.4% in the year-ago reported quarter.
In the inland market, average barge utilization was in the low to mid-90% range in first-quarter 2024. Inland revenues grew 14% year over year owing to pricing. The inland market accounted for 81% of segment revenues in the first quarter of 2024. Inland’s operating margin was in the high teens, with a modest impact from poor navigational conditions during the quarter.
In coastal, market conditions were strong during the quarter, with Kirby’s barge utilization in the mid to high-90% range. Coastal revenues grew 20% year over year owing to better pricing and the return to service of one unit previously in the shipyard. Coastal revenues accounted for 19% of marine transportation segment revenues and had an operating margin in the high single to low double-digit range.
In the distribution and services segment, revenues for the first quarter fell 1.5% to $332.61 million. Operating margin was 6.6% in the reported quarter compared with 6.7% in the year-ago reported quarter.
In the power generation market, revenues continue to grow with the demand for constant power and backup capabilities. Power generation revenues accounted for almost 41% of segment revenues. Operating margins were in the high-single digits.
In the commercial and industrial market, revenues and operating income declined year over year owing to lower activity in on-highway. This was offset by higher business levels in marine repair. Commercial and industrial revenues accounted for almost 43% of segment revenues. Operating margins were in the high-single digits.
In the oil and gas market, revenues and operating income declined year over year owing to lower levels of conventional oilfield activity which resulted in decreased demand for new transmissions and parts. This was partially offset by deliveries of e-frac equipment. Oil and gas revenues accounted for almost 16% of segment revenues. Operating margins were in the mid-single digits.
Balance Sheet Highlights & Cash Flow
As of Mar 31, 2024, Kirby had cash and cash equivalents of $75.2 million compared with $32.57 million at the end of the prior quarter. Total debt was $1,060.5 million at the first-quarter end compared with $1,016.59 million at the end of the fourth quarter.
Kirby repurchased 498,505 shares at an average price of $83.82 for $41.8 million during the first quarterof2024.
In first-quarter 2024, Kirby generated $123.3 million of cash from operating activities compared with $16.5 million in the year-ago quarter. Capital expenditures were $81 million. Free cash flow was $42.3 million.
2024 Outlook
Under the Marine Transportation segment, for 2024, inland revenues are expected to grow in the mid to high single-digit range on a full-year basis. Operating margins are likely to improve during the year and average around 20% for the full year. Coastal revenues for the full year are anticipated to increase in the high single to low double-digits range on a year-over-year basis. Coastal operating margins are anticipated to be in the high single to low double-digit range on a full-year basis.
For 2024, distribution and services segment revenues are anticipated to be flat to slightly down on a full-year basis, with operating margins in the mid to high-single digits but slightly lower year over year due to mix.
Net cash flow provided by operating activities is anticipated in the $600-$700 million band. Our estimate is pegged at $616.6 million.
Capital expenditures are expected to be between $290 and $330 million. Our estimate is pegged at $311.4 million.
Currently, Kirby carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
Delta Air Lines DAL reported first-quarter 2024 earnings (excluding 39 cents from non-recurring items) of 45 cents per share, which comfortably beat the Zacks Consensus Estimate of 36 cents. Earnings increased 80% on a year-over-year basis.
Revenues of $13.75 billion surpassed the Zacks Consensus Estimate of $12.84 billion and increased 7.75% on a year-over-year basis, driven by strong air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $12.56 billion, up 6% year over year.
United Airlines Holdings, Inc.UAL reported first-quarter 2024 loss per share (excluding 23 cents from non-recurring items) of 15 cents, which was narrower than the Zacks Consensus Estimate’s loss of 53 cents. In the year-ago reported quarter, UAL reported a loss of 63 cents per share.
Operating revenues of $12,539 million beat the Zacks Consensus Estimate of $12,428.4 million. The top line increased 9.7% year over year due to upbeat air-travel demand. This was driven by a 10.1% rise in passenger revenues (accounting for 90.2% of the top line) to $11,313 million. Almost 39,325 passengers traveled on UAL flights in the first quarter, up 6.8% year over year.
J.B. Hunt Transport Services, Inc.’s JBHT first-quarter 2024 earnings of $1.22 per share missed the Zacks Consensus Estimate of $1.53 and declined 35.5% year over year.
JBHT’s total operating revenues of $2,944 million missed the Zacks Consensus Estimate of $3,117.1 million and fell 8.8% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 7% year over year. The downfall was owing to a 9% decrease in segment gross revenue per load in both Intermodal (JBI) and Truckload (JBT), 22% fewer loads in Integrated Capacity Solution (ICS), and a modest decline in average trucks and productivity in Dedicated Contract Services (DCS). Revenue declines in JBI, ICS, JBT and DCS were partially offset by Final Mile Services (FMS) revenue growth of 2%, primarily driven by new contracts implemented over the past year.
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