## Kinder Morgan (KMI) Earnings Preview: What to Expect on October 16th
Get ready for a crucial event in the energy sector as Kinder Morgan (KMI), one of North America’s largest midstream energy companies, prepares to unveil its latest quarterly earnings report on Wednesday, October 16th. Investors are eager to see if the company can deliver on expectations and offer positive guidance for the future.
What are analysts predicting?
Analysts are anticipating Kinder Morgan to report earnings per share (EPS) of $0.27. It’s important to remember that stock prices can be significantly influenced by future projections, not just past performance. Investors will be keen to hear any news of surpassing these estimates and strong guidance for the next quarter.
Looking at the Past:
In the previous quarter, Kinder Morgan missed EPS by $0.01. Despite this, the stock price climbed by 2.53% the following day. Let’s take a deeper dive into the company’s recent earnings history and the subsequent market reactions:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|————|—————|————-|—————-|
| Q2 2024 | 0.26 | 0.25 | 3.0% |
| Q1 2024 | 0.34 | 0.34 | 3.0% |
| Q4 2023 | 0.30 | 0.28 | -1.0% |
| Q3 2023 | 0.26 | 0.25 | -1.0% |
As of October 14th, Kinder Morgan shares were trading at $24.88. Over the past 52 weeks, the stock has surged by 44.75%. These positive returns suggest that long-term shareholders are likely bullish heading into this earnings release.
Analyst Sentiment and Peer Comparisons:
To understand the market’s expectations, it’s vital to analyze the views of industry analysts. Currently, the consensus rating for Kinder Morgan is
Neutral
, based on 11 analyst ratings. The average one-year price target is $23.09, indicating a potential 7.19% downside.For a broader perspective, let’s compare Kinder Morgan to its peers: Energy Transfer, ONEOK, and Williams Companies. Here’s a breakdown of their analyst ratings and average one-year price targets:
| Company | Consensus Rating | Average 1-Year Price Target | Potential Upside/Downside |
|————————|—————–|—————————–|—————————-|
| Energy Transfer | Buy | $23.0 | 7.56% Downside |
| ONEOK | Neutral | $94.6 | 280.23% Upside |
| Williams Companies | Neutral | $48.88 | 96.46% Upside |
Key Findings: Peer Analysis Summary:
| Company | Consensus Revenue Growth | Gross Profit | Return on Equity |
|————————|—————————|—————|——————|
| Kinder Morgan | 2.03% | $2.02B | 1.88% |
| Energy Transfer | 13.15% | $3.91B | 3.37% |
| ONEOK | 31.14% | $1.74B | 4.71% |
| Williams Companies | -5.92% | $1.35B | 3.25% |
Key Takeaway:
Kinder Morgan sits in the middle of the pack for revenue growth among its peers. The company has the lowest gross profit compared to the other companies listed. Additionally, its return on equity is also lower than some of its peers. Overall, Kinder Morgan’s performance appears to be average when compared to its peers within the industry.About Kinder Morgan:
Kinder Morgan is a powerhouse in the energy industry. The company owns or operates over 82,000 miles of pipelines and 139 storage terminals, making it a major player in the transportation, storage, and processing of natural gas, crude oil, refined products, natural gas liquids, and carbon dioxide. A significant portion of Kinder Morgan’s revenue comes from fee-based contracts for handling, moving, and storing fossil fuel products.
Kinder Morgan’s Economic Impact:
| Metric | Value | Industry Benchmark | |
|————————|———–|——————–|—|
| Market Capitalization | Above | Above | |
| Revenue Growth | 2.03% | Higher | |
| Net Margin | Below | Below | |
| Return on Equity | Below | Below | |
| Return on Assets | Below | Below | |
| Debt-to-Equity Ratio | Below | Above | |
Key Takeaways from Financial Analysis:
*
Market Capitalization:
Kinder Morgan’s market capitalization is impressive, signaling a strong market presence and a significant size within the industry.*
Revenue Growth:
Kinder Morgan experienced positive revenue growth over the past three months. However, the company faces some challenges when compared to its peers. Achieving a growth rate lower than the average among peers suggests the need for strategic adjustments.*
Net Margin:
The company’s net margin falls below industry benchmarks. This could indicate potential difficulties in achieving strong profitability and highlights the need for effective cost management.*
Return on Equity (ROE):
Kinder Morgan’s ROE falls short of industry standards. This suggests the company may be struggling to efficiently utilize equity capital to deliver satisfactory returns to shareholders.*
Return on Assets (ROA):
Similar to the ROE, Kinder Morgan’s ROA lags behind industry averages. This indicates challenges in maximizing returns from its assets and potentially points to inefficiencies in resource utilization.*
Debt Management:
Kinder Morgan’s debt-to-equity ratio is below the industry average, which is a positive sign. It suggests that the company relies less on debt financing, promoting a healthier balance between debt and equity, a factor that can be favorable in the eyes of investors.To stay up-to-date on all earnings releases for Kinder Morgan, be sure to check out their earnings calendar.