Energy management company World Kinect (NYSE: WKC) will be reporting results this Thursday after market hours. Here’s what to look for.
World Kinect beat analysts’ revenue expectations last quarter, reporting revenues of $13.59 billion, up 50.3% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. It reported a year-on-year production volumes decline of 7.5%.
Is World Kinect a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting World Kinect’s revenue to grow 31.4% year on year, a reversal from the 10.5% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. World Kinect has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at World Kinect’s peers in the oilfield services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Baker Hughes delivered year-on-year revenue growth of 14.5%, beating analysts’ expectations by 3%, and NOV reported revenues up 2.3%, topping estimates by 1.5%.
Read our full analysis of Baker Hughes’s results here and NOV’s results here.
There has been positive sentiment among investors in the oilfield services segment, with share prices up 5.9% on average over the last month. World Kinect is up 3.3% during the same time and is heading into earnings with an average analyst price target of $37.67 (compared to the current share price of $36.38).
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