Kinder Morgan, Inc. (KMI) is set to unveil its third-quarter 2024 earnings on October 16, following the market’s close.
Before diving into what may influence this pipeline company’s results, let’s briefly look back at its previous quarter’s performance.
Explore the latest EPS estimates and surprises on Zacks Earnings Calendar.
Q2 Earnings Overview & Surprise History
In the last quarter, Kinder Morgan reported adjusted earnings per share (EPS) of 25 cents, matching the Zacks consensus estimate. This result stemmed largely from stronger financial performance in its Natural Gas Pipelines, Products Pipelines, and Terminals segments, although it faced challenges due to rising costs and expenses.
Over the previous four quarters, Kinder Morgan beat the Zacks Consensus Estimate once, met it in another instance, and fell short twice, leading to an average negative surprise of 2.63%. This performance is illustrated in the graph below:
Kinder Morgan, Inc. Price and EPS Surprise
Kinder Morgan, Inc. price-eps-surprise | Kinder Morgan, Inc. Quote
Earnings Estimates Trends
Currently, the Zacks Consensus Estimate for third-quarter EPS stands at 27 cents, reflecting an upward revision with no downward changes in the past week. This represents an 8% increase compared to the same period last year.
The revenue estimate for this quarter is projected at $3.82 billion, which represents a 2.29% decline from the previous year’s figures.
Key Factors Impacting Performance
Kinder Morgan is expected to show steady performance in the upcoming quarter, backed by long-term contracts that provide stable cash inflows and protect against short-term market volatility.
The company’s extensive natural gas pipeline network is likely to benefit from increased demand for natural gas, particularly due to the ongoing growth in liquefied natural gas (LNG) exports. Kinder Morgan transports approximately 40% of the entire U.S. natural gas supply, positioning it well to leverage this trend. As LNG export facilities, both in the U.S. and Mexico, continue to expand, utilization rates across its pipeline network are anticipated to remain strong.
According to the EIA, the Natural Gas Henry Hub Spot price rose by 1.4% sequentially in the third quarter. Increased natural gas prices, driven by supply constraints and rising international demand, could positively influence Kinder Morgan’s revenue, especially in its gathering and processing segments.
These factors are expected to enhance the company’s financial performance during the quarter.
Earnings Expectations
Current analysis suggests a strong possibility of Kinder Morgan exceeding earnings expectations this quarter. Our proven method shows a positive Earnings ESP combined with a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) increases the likelihood of an earnings beat. Kinder Morgan fits this profile, and the details are as follows.
Earnings ESP: Currently, KMI’s Earnings ESP stands at +3.70%. You can discover the best stocks to buy or sell before their earnings are released using our Earnings ESP Filter.
Zacks Rank: The company holds a Zacks Rank of #3.
Additional Stock Considerations
Here are some other stocks that may also be worth considering, as they show the potential for positive earnings results this reporting season.
Cheniere Energy, Inc. (LNG) boasts an Earnings ESP of +2.27% and a Zacks Rank of #1. Its third-quarter earnings release is set for October 31, with a consensus EPS estimate of $1.84, indicating a decrease of 22.4% from the previous year.
Cenovus Energy Inc. (CVE) features an Earnings ESP of +8.11% alongside a Zacks Rank of #3. Their third-quarter earnings announcement is scheduled for November 7, with an EPS consensus of 56 cents, reflecting a 22.2% drop year-over-year.
Chevron Corporation (CVX) shows an Earnings ESP of +3.36% and a Zacks Rank of #3. Chevron plans to release its third-quarter earnings on November 1, with an EPS consensus estimate set at $2.80, an 8.2% decrease compared to last year.
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Chevron Corporation (CVX): Free Stock Analysis Report
Cenovus Energy Inc (CVE): Free Stock Analysis Report
Cheniere Energy, Inc. (LNG): Free Stock Analysis Report
Kinder Morgan, Inc. (KMI): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
