Marine transportation firm Kirby's Q3 revenue beats on barge utilization levels

Overview

• Kirby Q3 revenue of $871.2 mln beats analyst expectations

• EPS for Q3 rises 6% yr/yr to $1.65

• Company repurchased 1.3 mln shares for $120 mln in Q3

Outlook

• Kirby expects inland marine conditions to improve modestly

• Coastal marine fundamentals remain favorable, with steady demand expected

• Kirby forecasts full-year distribution and services revenue up mid-single digits

Result Drivers

• COASTAL MARINE - Strong demand and limited vessel availability led to high barge utilization and improved pricing, boosting operating margins to around 20%

• POWER GENERATION - Revenue increased 56% yr/yr, driven by demand from data centers and prime power customers, enhancing distribution and services margins

• INLAND MARINE - Market softness due to seasonal weather and muted petrochemical activity affected barge utilization and spot market pricing

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the marine freight & logistics peer group is "buy."

• Wall Street's median 12-month price target for Kirby Corp is $109.00, about 18.7% above its October 28 closing price of $88.64

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nGNX5WPg4W

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