Yahoo Finance Knife River Corporation (NYSE:KNF) First-Quarter Results: Here's What Analysts Are Forecasting For This Year
Knife River Corporation (NYSE:KNF) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. Knife River beat expectations with revenues of US$330m arriving 9.5% ahead of forecasts. The company also reported a statutory loss of US$0.84, 2.6% smaller than was expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Knife River
Taking into account the latest results, Knife River's six analysts currently expect revenues in 2024 to be US$2.89b, approximately in line with the last 12 months. Statutory earnings per share are predicted to climb 14% to US$3.57. Before this earnings report, the analysts had been forecasting revenues of US$2.88b and earnings per share (EPS) of US$3.51 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$85.40, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Knife River, with the most bullish analyst valuing it at US$90.00 and the most bearish at US$76.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Knife River's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.0% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.2% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Knife River.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$85.40, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Knife River going out to 2026, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Knife River that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
