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Kinder Morgan (KMI) to Report Q1 Earnings: What's in Store?
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Kinder Morgan Inc. (KMI - Free Report) is scheduled to report first-quarter 2020 earnings on Apr 22.
In the last reported quarter, the leading energy infrastructure company’s earnings met the Zacks Consensus Estimate, backed by increased natural gas transportation and gathering volumes. Notably, Kinder Morgan’s earnings missed the Zacks Consensus Estimate only once and met the same thrice in the trailing four quarters, the average negative surprise being 1.09%. This is depicted in the graph below:
Let’s see how things have shaped up prior to this announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for first-quarter earnings per share of 24 cents has witnessed one upward and three downward revisions over the past 60 days. The estimated figure suggests a decline of 4% from the prior-year reported number.
The consensus estimate for first-quarter revenues of $3.4 billion indicates a 0.2% decline from the year-ago reported figure.
Factors to Consider
Being a leading North American midstream energy firm, Kinder Morgan is likely to have generated stable fee-based revenues in the first quarter from its gigantic natural gas transportation network, spreading across roughly 70,000 miles.
Notably, we expect daily transportation volumes of natural gas to have grown year over year in the March quarter. The Zacks Consensus Estimate for transportation volumes through natural gas pipeline is pegged at 40,099 billion British thermal units per day (BBtu/D), compared with the year-ago quarter’s 36,674 BBtu/D.
Moreover, the Zacks Consensus Estimate for the company’s adjusted earnings before depreciation, depletion and amortization expenses, including amortization of excess cost of equity investments (EBDA) from the Natural Gas Pipelines, is pegged at $1,215 million, suggesting an improvement from $1,201 million recorded in the March quarter of 2019.
Apart from being an operator of natural gas transportation network, Kinder Morgan is considered a leading independent transporter of refined products in North America. Notably, through its refined product pipelines, the company has been witnessing steady growth in transportation volumes over the past several years. The same is likely to have continued in the March quarter of 2020. Also, the consensus estimate for the company’s adjusted segment EBDA from Products Pipelines is pegged at $315 million, indicating a rise from $293 million in the March quarter of 2019.
Despite the positives, the company’s significant exposure to debt capital needs to be considered. Notably, Kinder Morgan’s balance sheet is more levered than the composite stocks belonging to the industry.
Earnings Whispers
Our proven model does not predict an earnings beat for Kinder Morgan this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Earnings ESP: Earnings ESP represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Kinder Morgan has an Earnings ESP of -0.52%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Kinder Morgan currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for Kinder Morgan, here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
Cabot Oil & Gas Corporation has an Earnings ESP of +0.62% and a Zacks Rank of 3. It is scheduled to report first-quarter results on Apr 30, after the closing bell.
Laredo Petroleum, Inc. has an Earnings ESP of +3.16% and a Zacks Rank #3. The firm is scheduled to release earnings on May 6, after the closing bell.
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Kinder Morgan (KMI) to Report Q1 Earnings: What's in Store?
Kinder Morgan Inc. (KMI - Free Report) is scheduled to report first-quarter 2020 earnings on Apr 22.
In the last reported quarter, the leading energy infrastructure company’s earnings met the Zacks Consensus Estimate, backed by increased natural gas transportation and gathering volumes. Notably, Kinder Morgan’s earnings missed the Zacks Consensus Estimate only once and met the same thrice in the trailing four quarters, the average negative surprise being 1.09%. This is depicted in the graph below:
Kinder Morgan, Inc. Price and EPS Surprise
Kinder Morgan, Inc. price-eps-surprise | Kinder Morgan, Inc. Quote
Let’s see how things have shaped up prior to this announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for first-quarter earnings per share of 24 cents has witnessed one upward and three downward revisions over the past 60 days. The estimated figure suggests a decline of 4% from the prior-year reported number.
The consensus estimate for first-quarter revenues of $3.4 billion indicates a 0.2% decline from the year-ago reported figure.
Factors to Consider
Being a leading North American midstream energy firm, Kinder Morgan is likely to have generated stable fee-based revenues in the first quarter from its gigantic natural gas transportation network, spreading across roughly 70,000 miles.
Notably, we expect daily transportation volumes of natural gas to have grown year over year in the March quarter. The Zacks Consensus Estimate for transportation volumes through natural gas pipeline is pegged at 40,099 billion British thermal units per day (BBtu/D), compared with the year-ago quarter’s 36,674 BBtu/D.
Moreover, the Zacks Consensus Estimate for the company’s adjusted earnings before depreciation, depletion and amortization expenses, including amortization of excess cost of equity investments (EBDA) from the Natural Gas Pipelines, is pegged at $1,215 million, suggesting an improvement from $1,201 million recorded in the March quarter of 2019.
Apart from being an operator of natural gas transportation network, Kinder Morgan is considered a leading independent transporter of refined products in North America. Notably, through its refined product pipelines, the company has been witnessing steady growth in transportation volumes over the past several years. The same is likely to have continued in the March quarter of 2020. Also, the consensus estimate for the company’s adjusted segment EBDA from Products Pipelines is pegged at $315 million, indicating a rise from $293 million in the March quarter of 2019.
Despite the positives, the company’s significant exposure to debt capital needs to be considered. Notably, Kinder Morgan’s balance sheet is more levered than the composite stocks belonging to the industry.
Earnings Whispers
Our proven model does not predict an earnings beat for Kinder Morgan this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Earnings ESP: Earnings ESP represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Kinder Morgan has an Earnings ESP of -0.52%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Kinder Morgan currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for Kinder Morgan, here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
Enbridge Inc (ENB - Free Report) has an Earnings ESP of +2.52% and is a Zacks #3 Ranked player. The company is scheduled to release first-quarter results before the opening bell on May 7. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot Oil & Gas Corporation has an Earnings ESP of +0.62% and a Zacks Rank of 3. It is scheduled to report first-quarter results on Apr 30, after the closing bell.
Laredo Petroleum, Inc. has an Earnings ESP of +3.16% and a Zacks Rank #3. The firm is scheduled to release earnings on May 6, after the closing bell.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>