What's in the Offing for Kinder Morgan's (KMI) Q3 Earnings?
Kinder Morgan, Inc. KMI is set to report third-quarter 2023 earnings on Oct 18, after the closing bell.
In the last reported quarter, the company’s adjusted earnings per share of 24 cents beat the Zacks Consensus Estimate by a penny due to higher gathering and transport volumes. However, lower contributions from Product Pipelines offset the positives.
Kinder Morgan’s earnings beat the Zacks Consensus Estimate twice, met once and missed the same once in the trailing four quarters, the negative average surprise being 1.5%. 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 third-quarter earnings per share of 26 cents has witnessed two upward revisions and no downward movement over the past 30 days. The estimated figure suggests a 4% increase from the prior-year reported number.
The Zacks Consensus Estimate for third-quarter revenues of $4.3 billion indicates a 17.8% decline from the year-ago reported figure.
Factors to Note
Being a transporter of 1.7 million barrels per day of refined products, Kinder Morgan is the largest independent transporter of refined products in North America. Higher volumes transported in its pipeline systems are likely to have boosted the company’s profit levels in the third quarter.
However, the Zacks Consensus Estimate for revenues from KMI’s Natural Gas Pipelines segment for the third quarter is pegged at $2,746 million, suggesting a decline from $3,505 million in the prior-year reported quarter. Our estimate for revenues from KMI’s Natural Gas Pipelines segment is also expected to decline year over year in the third quarter.
The Zacks Consensus Estimate for revenues from KMI’s total refined product volumes per day is pegged at 1,627 thousand barrels per day (Mbbls/d), suggesting a marginal decline from the $1,635 Mbbls/d reported in the prior-year quarter. Our estimate for revenues from KMI’s total refined product volumes per day is also expected to decline year over year in the third quarter.
This is likely to have affected Kinder Morgan’s performance in the to-be-reported quarter.
Earnings Whispers
Our proven model does not indicate 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 not the case here, as you will see below.
Earnings ESP: KMI’s Earnings ESP is -3.16%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2.
Stocks to Consider
Here are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
Matador Resources Company MTDR has an Earnings ESP of +6.38% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador is scheduled to release third-quarter earnings on Oct 24. The Zacks Consensus Estimate for MTDR’s earnings is pegged at $1.54 per share, suggesting a decline from the prior-year reported figure.
Range Resources Corporation RRC presently has an Earnings ESP of +7.08% and a Zacks Rank #2.
Range Resources is scheduled to release third-quarter earnings on Oct 24. The Zacks Consensus Estimate for RRC’s earnings is pegged at 31 cents per share, suggesting a decline from the prior-year reported figure.
Antero Resources Corporation AR currently has an Earnings ESP of +91.67% and a Zacks Rank #3.
Antero Resources is scheduled to release third-quarter earnings on Oct 25. The Zacks Consensus Estimate for AR’s earnings is pegged at a loss of 6 cents per share, suggesting a significant decline from the prior-year reported figure.
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Range Resources Corporation (RRC) : Free Stock Analysis Report
Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
Matador Resources Company (MTDR) : Free Stock Analysis Report
Antero Resources Corporation (AR) : Free Stock Analysis Report
