Energy infrastructure large-cap Kinder Morgan (KMI), whose stock has rallied hard into its October 16 earnings release, has reported results that missed analyst estimates for both revenues and earnings.
The company posted its third quarterly revenue decline (year-over-year) of the past four quarters despite expectations for growth. Kinder Morgan’s top line came in at $3.69 billion for Q3, while the average revenue estimate from six Wall Street analysts was $4.05 billion.
In terms of the bottom-line result, KMI reported a non-GAAP EPS result of $0.25, lower than the $0.27 expected.
Shares of KMI had rallied nearly 16% over the past month, with shares closing at $24.93 prior to Wednesday afternoon’s earnings release.
Full-Year Earnings Estimate May Be at Risk
For FY2024, analysts had been banking on an annual EPS number of $1.20. However, with Kinder Morgan delivering $0.84 in EPS over the first nine months of the year, that full-year estimate may now be at risk.
Management’s comments in the press release accompanying Q3 financial results did not immediately address any performance weaknesses. Instead, Chairman Richard Kinder described the results as “another solid quarter of strong operational and financial performance.” Meanwhile CEO Kim Dang spoke of Kinder Morgan’s strong balance sheet and project advancements.
Do Wall Street Analysts Recommend KMI Stock?
Of the 13 Wall Street analysts who cover Kinder Morgan stock, there are six Buy ratings and seven Hold ratings. No analysts have given KMI a Sell rating in the past three months. The average KMI price target is $23.09, which stands more than 7% below today’s closing price prior to the earnings announcement. However, it’s worth noting that estimates will likely change following today’s earnings report.
