Natural gas compression provider Kodiak Gas Services (NYSE:KGS) will be reporting results this Thursday after market hours. Here’s what investors should know.
Kodiak Gas Services beat analysts’ revenue expectations last quarter, reporting revenues of $345.8 million, up 4.9% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates.
Is Kodiak Gas Services 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 Kodiak Gas Services’s revenue to grow 18.9% year on year, improving from the 4.3% increase 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. Kodiak Gas Services has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Kodiak Gas Services’s peers in the upstream & integrated segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Expand Energy’s revenues decreased 10.6% year on year, beating analysts’ expectations by 24.8%, and Kinder Morgan reported revenues up 10.8%, topping estimates by 5.8%. Expand Energy traded up 4.5% following the results while Kinder Morgan’s stock price was unchanged.
Read our full analysis of Expand Energy’s results here and Kinder Morgan’s results here.
There has been positive sentiment among investors in the upstream & integrated segment, with share prices up 6.7% on average over the last month. Kodiak Gas Services is down 7.5% during the same time and is heading into earnings with an average analyst price target of $83.53 (compared to the current share price of $61.25).
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