Kodiak Gas Services (KGS) reported quarterly earnings of $0.23 per share, below the Zacks Consensus Estimate of $0.52 per share. This compares to earnings per share of breakeven a year ago. These figures are adjusted for one-time items.
This quarterly report represents an earnings surprise of -55.77%. A quarter ago, it was expected that this oil and gas infrastructure services provider would report earnings of $0.36 per share when it actually produced earnings of $0.39, representing a surprise of 8.33%.
Over the past four quarters, the company has beaten consensus earnings per share estimates twice.
Kodiak Gas, which belongs to the Zacks Oil and Gas – Machinery and Equipment industry, posted revenues of $309.65 million for the quarter ending June 2024, missing the Zacks Consensus Estimate by 1.35%. This compares to year-ago revenues of $203.31 million. The company has surpassed consensus revenue estimates twice in the last four quarters.
The sustainability of the stock’s immediate price movement based on the recently released numbers and future earnings expectations will primarily depend on management’s comments in the earnings call.
Kodiak Gas shares have gained about 43.8 percent since the beginning of the year, while the S&P 500 has gained 12 percent.
What’s next for Kodiak Gas?
Although Kodiak Gas has outperformed the market so far this year, investors are left with the question: what’s next for the stock?
There are no easy answers to this important question, but one reliable measure that can help investors is the company’s earnings outlook. This includes not only the current consensus expectations for the coming quarters, but also how these expectations have changed recently.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the trend of forecast revisions for Kodiak Gas is mixed. While the magnitude and direction of forecast revisions could change following the company’s just-released earnings report, the current status equates to a Zacks Rank #3 (Hold) for the stock. So, shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the coming days. The current consensus earnings per share estimate is $0.37 on revenues of $317.47 million for the coming quarter and $1.81 on revenues of $1.17 billion for the current fiscal year.
Investors should be aware of the fact that the outlook for the industry can also have a significant impact on the stock’s performance. In terms of the Zacks Industry Rank, Oil and Gas – Machinery and Equipment is currently in the top 18% of the 250+ Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock in the same industry, Matrix Service (MTRX), has not yet reported results for the quarter ending June 2024.
This energy services company is expected to report quarterly loss of $0.21 per share in its upcoming report, representing a change of -90.9% year over year. The consensus earnings per share estimate for the quarter has remained unchanged over the past 30 days.
Matrix Service revenue is expected to be $215.61 million, an increase of 4.7% over the prior year quarter.
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Kodiak Gas Services, Inc. (KGS): Free Stock Analysis Report
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