Yahoo Finance Kinder Morgan, Inc. Just Missed Revenue By 14%: Here's What Analysts Think Will Happen Next
The analysts might have been a bit too bullish on Kinder Morgan, Inc. (NYSE:KMI), given that the company fell short of expectations when it released its quarterly results last week. Kinder Morgan reported an earnings miss, with US$3.8b revenues falling 14% short of analyst models, and statutory earnings per share (EPS) of US$0.33 also coming in slightly below expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kinder Morgan after the latest results.
View our latest analysis for Kinder Morgan
Following the latest results, Kinder Morgan's eleven analysts are now forecasting revenues of US$17.3b in 2024. This would be a solid 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 13% to US$1.24. In the lead-up to this report, the analysts had been modelling revenues of US$17.7b and earnings per share (EPS) of US$1.26 in 2024. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.
The average price target was steady at US$20.42even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Kinder Morgan analyst has a price target of US$22.00 per share, while the most pessimistic values it at US$18.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Kinder Morgan's growth to accelerate, with the forecast 18% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Kinder Morgan is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also downgraded Kinder Morgan's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, earnings are more important to the intrinsic value of the business. The consensus price target held steady at US$20.42, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Kinder Morgan. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Kinder Morgan going out to 2026, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Kinder Morgan , and understanding these should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
