Market Overview

Earnings Preview for Kinder Morgan

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On Wednesday, October 21, Kinder Morgan (NYSE: KMI) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

What Are Earnings, Net Income, And Earnings Per Share (EPS)?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings and Revenue

Based on Kinder Morgan management projections, analysts predict EPS of $0.08 on revenue of $257.83 million. In the same quarter last year, Kinder Morgan announced EPS of $0.22 on revenue of $3.21 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a given company yields the "consensus estimates." If the company posts earnings or revenue above or below the consensus estimate, the stock may move by a considerable margin.

If the company were to match the consensus estimate, earnings would be down 63.64%. Revenue would be down 91.98% from the year-ago period. Kinder Morgan's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.17 0.27 0.26 0.24
EPS Actual 0.17 0.24 0.26 0.22
Revenue Estimate 2.89 B 3.41 B 3.62 B 3.45 B
Revenue Actual 2.56 B 3.11 B 3.35 B 3.21 B

Stock Performance

Shares of Kinder Morgan were trading at $12.71 as of October 19. Over the last 52-week period, shares are down 37.11%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Kinder Morgan is scheduled to hold the call at 16:30:00 ET and can be accessed here: https://event.on24.com/eventRegistration/EventLobbyServlet?target=reg20.jsp&referrer=https%3A%2F%2Fir.kindermorgan.com%2F&eventid=2628474&sessionid=1&key=C013D1FCE27BF34219F956B2F34E8663&regTag=&sourcepage=register

 

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