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Is Kinder Morgan Poised for a Beat in Fourth-Quarter Earnings?
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Kinder Morgan, Inc. (KMI - Free Report) is set to report fourth-quarter 2024 earnings on Jan. 22, after the closing bell.
Let us delve into the factors that are anticipated to have affected this pipeline operator’s quarterly performance. However, before that, it would be worth reviewing KMI’s performance in the previous quarter.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, the company’s adjusted earnings per share of 25 cents missed the Zacks Consensus Estimate of 27 cents, primarily due to lower contributions from the Products Pipelines and CO2 business segments.
Kinder Morgan’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters, met in one and missed in the other two, the average negative surprise being 3.52%. This is depicted in the graph below:
The Zacks Consensus Estimate for fourth-quarter earnings per share of 33 cents has witnessed no upward revision and one downward movement over the past 30 days. The estimate suggests a 17.86% improvement from the prior-year reported numbers.
The top-line estimate of $4.09 billion indicates a 1.28% increase from the year-ago reported figure.
Factors to Note
Kinder Morgan is expected to have maintained a stable performance in the fourth quarter, bolstered by long-term contracts that ensure consistent cash flows and protect against short-term market fluctuations.
The company’s vast natural gas pipeline network has likely benefited from the high demand for natural gas. Liquefied natural gas exports, which saw continued expansion in the fourth quarter, must have raised the demand. Kinder Morgan, which transports about 40% of all U.S. natural gas, is well-positioned to capitalize on this growth. The December 2024 announcement of the $1.4 billion Mississippi Crossing Project highlights Kinder Morgan's strategic expansion. As LNG export facilities continue to scale up, including those serving the United States and Mexico, pipeline utilization is expected to remain robust.
Per EIA, the Natural Gas Henry Hub Spot price increased almost 16% sequentially in the fourth quarter. Higher natural gas prices in parts of the fourth quarter, fueled by supply constraints and heightened international demand, might have positively impacted Kinder Morgan’s revenues, particularly in its gathering and processing segments.
These factors are anticipated to have aided the company’s financial performance in the quarter.
Earnings Whisper
Our proven model indicates an earnings beat for Kinder Morgan this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is just the case here, as you will see below.
Earnings ESP: KMI’s Earnings ESP is +0.76%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks to Consider
Here are some other stocks that you may want to consider, as these too have the right combination of elements to post an earnings beat this reporting cycle.
Sunoco is scheduled to release fourth-quarter earnings on Feb. 11. The Zacks Consensus Estimate for SUN’s earnings is pegged at $2.46 per share, suggesting a 264% increase from the prior-year reported figure.
Baker Hughes (BKR - Free Report) presently has an Earnings ESP of +0.88% and a Zacks Rank #3.
Baker Hughes is scheduled to release fourth-quarter earnings on Jan. 30. The Zacks Consensus Estimate for BKR’s earnings is pegged at 63 cents per share, suggesting a 23.53% increase from the prior-year reported figure.
Viper Energy (VNOM - Free Report) currently has an Earnings ESP of +3.68% and a Zacks Rank #3.
Viper Energy is scheduled to release fourth-quarter earnings on Feb. 24. The Zacks Consensus Estimate for VNOM’s earnings is pegged at $0.39 per share, suggesting a 41.8% decline from the prior-year reported figure.
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Is Kinder Morgan Poised for a Beat in Fourth-Quarter Earnings?
Kinder Morgan, Inc. (KMI - Free Report) is set to report fourth-quarter 2024 earnings on Jan. 22, after the closing bell.
Let us delve into the factors that are anticipated to have affected this pipeline operator’s quarterly performance. However, before that, it would be worth reviewing KMI’s performance in the previous quarter.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, the company’s adjusted earnings per share of 25 cents missed the Zacks Consensus Estimate of 27 cents, primarily due to lower contributions from the Products Pipelines and CO2 business segments.
Kinder Morgan’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters, met in one and missed in the other two, the average negative surprise being 3.52%. This is depicted in the graph below:
Kinder Morgan, Inc. Price and EPS Surprise
Kinder Morgan, Inc. price-eps-surprise | Kinder Morgan, Inc. Quote
Estimate Trend
The Zacks Consensus Estimate for fourth-quarter earnings per share of 33 cents has witnessed no upward revision and one downward movement over the past 30 days. The estimate suggests a 17.86% improvement from the prior-year reported numbers.
The top-line estimate of $4.09 billion indicates a 1.28% increase from the year-ago reported figure.
Factors to Note
Kinder Morgan is expected to have maintained a stable performance in the fourth quarter, bolstered by long-term contracts that ensure consistent cash flows and protect against short-term market fluctuations.
The company’s vast natural gas pipeline network has likely benefited from the high demand for natural gas. Liquefied natural gas exports, which saw continued expansion in the fourth quarter, must have raised the demand. Kinder Morgan, which transports about 40% of all U.S. natural gas, is well-positioned to capitalize on this growth. The December 2024 announcement of the $1.4 billion Mississippi Crossing Project highlights Kinder Morgan's strategic expansion. As LNG export facilities continue to scale up, including those serving the United States and Mexico, pipeline utilization is expected to remain robust.
Per EIA, the Natural Gas Henry Hub Spot price increased almost 16% sequentially in the fourth quarter. Higher natural gas prices in parts of the fourth quarter, fueled by supply constraints and heightened international demand, might have positively impacted Kinder Morgan’s revenues, particularly in its gathering and processing segments.
These factors are anticipated to have aided the company’s financial performance in the quarter.
Earnings Whisper
Our proven model indicates an earnings beat for Kinder Morgan this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is just the case here, as you will see below.
Earnings ESP: KMI’s Earnings ESP is +0.76%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks to Consider
Here are some other stocks that you may want to consider, as these too have the right combination of elements to post an earnings beat this reporting cycle.
Sunoco LP (SUN - Free Report) currently has an Earnings ESP of +11.03% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco is scheduled to release fourth-quarter earnings on Feb. 11. The Zacks Consensus Estimate for SUN’s earnings is pegged at $2.46 per share, suggesting a 264% increase from the prior-year reported figure.
Baker Hughes (BKR - Free Report) presently has an Earnings ESP of +0.88% and a Zacks Rank #3.
Baker Hughes is scheduled to release fourth-quarter earnings on Jan. 30. The Zacks Consensus Estimate for BKR’s earnings is pegged at 63 cents per share, suggesting a 23.53% increase from the prior-year reported figure.
Viper Energy (VNOM - Free Report) currently has an Earnings ESP of +3.68% and a Zacks Rank #3.
Viper Energy is scheduled to release fourth-quarter earnings on Feb. 24. The Zacks Consensus Estimate for VNOM’s earnings is pegged at $0.39 per share, suggesting a 41.8% decline from the prior-year reported figure.