HOUSTON - Kirby Corporation (NYSE: NYSE:KEX), a major player in the marine transportation and distribution services sectors, has reported a robust start to 2024 with first-quarter earnings surpassing analyst estimates.
The company announced earnings per share (EPS) of $1.19, which was $0.21 higher than the analyst consensus of $0.98. Revenue for the quarter also exceeded expectations, coming in at $808 million against the forecasted $778.55 million. The stock was up 1.5% following the release.
This financial performance represents a significant improvement over the same period last year, with revenue showing a 7.7% increase from the first quarter of 2023's $750.4 million. The company attributes its strong results to improved market conditions in its inland marine segment, where it experienced a sequential increase in spot market prices and high-teens operating margins despite an increase in delay days. Coastal operating margins also saw an uptick, reaching the high single to low double-digit range.
David Grzebinski, Kirby's President and CEO, expressed satisfaction with the company's quarterly achievements. "We are off to a solid start in 2024. Both of our segments performed well during the quarter, delivering improved revenue and operating income, and our team executed well despite weather-related delays in the marine transportation segment and continuing supply chain delays in distribution and services," he said.
The company's inland marine transportation revenues grew by 14% year-over-year (YoY), driven by strong customer activity and higher spot market prices, which were up approximately 15% YoY. The coastal segment also reported a 20% increase in revenues YoY, bolstered by solid customer demand and limited availability of large capacity vessels, which led to price increases.
In distribution and services, Kirby saw stable demand across markets with a 42% sequential and 50% YoY increase in power generation revenues, highlighting the growing significance of this segment, which now constitutes 41% of Kirby's distribution and services revenues.
Looking ahead, Kirby anticipates steady quarterly earnings progression for the remainder of the year. The company expects operating margins to average around 20% for the full year, indicating confidence in the continued favorable market conditions.
Grzebinski concluded, "We continue to see favorable fundamentals as 2024 progresses, and we expect steady quarterly earnings progression for the remainder of the year."
Kirby's strong start to the year, coupled with its positive outlook, reflects the company's resilience and adaptability in the face of operational challenges, positioning it for continued success in the competitive marine transportation and services industries.
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