Kirby: Kirby Surpasses Q4 Earnings Estimates, Lags on Revenues

Ball Corp's Earnings Surpass Estimates in Q4, Increase 8% Y/Y In This Article: Kirby Corporation ( KEX ) reported fourth-quarter 2024earnings of $1.29 per share, which beat the Zacks Consensus Estimate of $1.27 and improved 24% year over year. Total revenues of $802.3 million missed the Zacks Consensus Estimate of $813.1 million but improved 0.4% year over year. Find the latest EPS estimates and surprises on Zacks Earnings Calendar . Total costs and expenses (on a reported basis) grew 6.5% year over year to $752.16million. Kirby Corporation Price, Consensus and EPS Surprise Kirby Corporation price-consensus-eps-surprise-chart | Kirby Corporation Quote KEX's Q4 Segmental Performance The company operates via two segments, namely, marine transportation and distribution and services. Marine transportation revenues in the fourth quarter were $466.77 million up 3.1% year over year. Operating income was $86.0 million compared with $68.2 million in the year-ago quarter. Segment operating margin rose to 18.4% from 15.1% in the year-ago quarter. In Inland, average barge utilization was 90% in the fourth quarter. Operating conditions were mostly unfavorable in the quarter, with a 30% sequential increase in delay days, driven by several lock closures and the onset of seasonal winter weather. During the quarter, average spot market rates were flat to slightly down sequentially and increased in the high-single-digit range. Revenues in the inland market grew 3% year over year owing to higher pricing and accounted for 82% of segment revenues. Operating margins were almost 20%. In coastal, market conditions remained favorable during the quarter, with Kirby's barge utilization remaining in the mid-to-high 90% range. Spot market prices increased in the high-single-digit range sequentially, and term contract renewals increased in the mid to high-20% range year over year. Revenues in the coastal market grew 6% year over year and accounted for 18% of the segment's revenues. The coastal business operating margin was in the low teens for the quarter. Distribution and services revenues for the fourth quarter were $335.5 million, down 3.1% year over year. Operating income came in at $26.8 million compared with $28.7 million in the year-ago quarter. Operating margin fell to 8.0% from 8.3% in the year-ago quarter. In the power generation market, revenues continue to grow as the need for 24/7 power and backup capabilities are critical. Power generation revenues increased 16% sequentially and 36% year over year. Overall, power generation revenues accounted for 39% of the segment's revenues. Power generation operating margins were in the high single digits. In the commercial and industrial market, revenues decreased 7% year over year due to lower business levels in Thermo King and on-highway businesses due to the ongoing trucking recession. Segmental operating income grew 28% year over year. Commercial and industrial accounted for 45% of the segment's revenues, and operating margins were in the high-single digits. In the oil and gas market, revenues and operating income were down year over year. Deliveries on orders of pressure pumping equipment and related equipment for electric fracturing were offset by lower activity in conventional frac remanufacturing. Overall, oil and gas revenues fell 38% year over year. Oil & gas accounted for nearly 16% of the segment's revenues. Oil and gas operating margins were in the mid to high-single digits. Balance Sheet Highlights & Cash Flow As of Dec. 31, 2024, Kirby had cash and cash equivalents of $74.4 million compared with $67.07 million at the end of the prior quarter. KEX reduced debt balances by $105 million in the fourth quarter Kirby repurchased 286,697 shares at an average price of $116.16 for $33.3 million in the fourth quarter. KEX's 2025 Outlook Overall, KEX expects its combined businesses will deliver another solid year of financial growth in 2025 with 15-25% year-over-year growth in earnings per share. Under the marine transportation segment, KEX anticipates positive market dynamics due to limited new barge construction for inland marine. Barge utilization rates are expected to be in the low to mid-90% range for the year, with continued improvement in term contract pricing as renewals occur throughout the year. Overall, inland revenues are expected to grow in the mid to high single-digit range for 2025. KEX anticipates operating margins will gradually improve during the year, with the first quarter being the lowest and an average of 200-300 basis points higher for the full year. In coastal marine, revenues for 2025 are anticipated to increase in the high-single to low-double-digit range on a year-over-year basis, driven by higher pricing on contracts. Coastal operating margins are expected to be in the mid-teens range on a full-year basis, with the first quarter being the lowest due to a high number of planned shipyards. In distribution and services, demand is expected to remain mixed across products and services. For 2025, distribution and services segment revenues are anticipated to be flat to slightly down with operating margins in the high-single digits but slightly lower year over year. Net cash flow provided by operating activities is anticipated to be in the $620-$720 million band. Capital expenditures are expected to be between $280 million and $320 million. KEX's Zacks Rank Currently, Kirby carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here . Q4 Performances of Other Transportation Companies Delta Air Lines DAL reported fourth-quarter 2024 earnings (excluding 56 cents from non-recurring items) of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.76. Earnings increased 44.5% on a year-over-year basis due to low fuel costs. DAL'srevenues of $15.56 billion surpassed the Zacks Consensus Estimate of $14.99 billion and increased 9.4% on a year-over-year basis, driven by strong holiday travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.44 billion, up 5.7% year over year. Passenger revenues, which accounted for 82.4% of total revenues, increased 5% year over year at $12.82 billion. J.B. Hunt Transport Services ( JBHT ) reported fourth-quarter 2024 earnings per share of $1.53, which fell short of the Zacks Consensus Estimate of $1.62. However, the bottom line increased 4.1% on a year-over-year basis. JBHT's total operating revenues of $3.15 billion narrowly beat the Zacks Consensus Estimate of $3.13 billion but declined 4.8% year over year. The decline was mainly due to lower fuel surcharge revenues and yield pressure in its Intermodal segment. JBHT's fourth-quarter 2024 operating revenues of $2.78 billion, excluding fuel surcharge revenue, decreased 2% from the year-ago reported quarter. Total operating income for the reported quarter increased 2% year over year to $207 million. Alaska Air Group, Inc. (ALK ) reported solid fourth-quarter 2024results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share of 97 cents outpaced the Zacks Consensus Estimate of 47 cents and improved more than 100% on a year-over-year basis. The reported figure exceeded the guided range of 40-50 cents. ALK's bottom line benefitted from solid revenue growth, cost and operational performance throughout the quarter and holiday travel periods. ALK also benefitted from a renegotiation of certain interest payments and favorability in its fourth-quarter tax rate. ALK's operating revenues of $3.53 billion beat the Zacks Consensus Estimate of $3.51 billion. The top line jumped 38.4% year over year, with passenger revenues accounting for 89.9% of the top line and increasing 37% owing to continued recovery in air-travel demand. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report Kirby Corporation (KEX) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research