Yahoo Finance Kirby Corporation Just Missed Earnings And Its EPS Looked Sad - But Analysts Have Updated Their Models
It's been a sad week for Kirby Corporation (NYSE:KEX), who've watched their investment drop 12% to US$73.29 in the week since the company reported its yearly result. It was not a great result overall. While revenues of US$2.8b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 19% to hit US$2.37 per share. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Kirby
Taking into account the latest results, Kirby's seven analysts currently expect revenues in 2020 to be US$2.82b, approximately in line with the last 12 months. Statutory earnings per share are expected to bounce 34% to US$3.19. Before this earnings report, analysts had been forecasting revenues of US$2.81b and earnings per share (EPS) of US$3.50 in 2020. Analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share forecasts for next year.
The consensus price target held steady at US$85.57, with analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Kirby at US$96.00 per share, while the most bearish prices it at US$68.00. This shows there is still quite a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. These estimates imply that sales are expected to slow, with a forecast revenue decline of 0.5% a significant reduction from annual growth of 6.5% over the last five years. Compare this with our data, which suggests that other companies in the same market are, in aggregate, expected to see their revenue grow 6.9% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - analysts also expect Kirby to grow slower than the wider market.
The Bottom Line
The biggest concern with the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kirby. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse than the wider market. The consensus price target held steady at US$85.57, with the latest estimates not enough to have an impact on analysts' estimated valuations.
With that in mind, we wouldn't be too quick to come to a conclusion on Kirby. Long-term earnings power is much more important than next year's profits. We have forecasts for Kirby going out to 2023, and you can see them free on our platform here.
It might also be worth considering whether Kirby's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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