Stephen Simpson, CFA
Stephen Simpson, CFA
Tue, Jun. 21, 11:35 AM
- Kirby (KEX -4.7%) is downgraded to Neutral from Outperform with a $60 price target at Credit Suisse, which cites slowing volumes and potential weakness in its coastal business.
- While the firm likes KEX's competitive position and the long-term outlook for the maritime business, it says Q2 tonnage on the river looks to be down 3%-4% Y/Y; unsurprisingly. crude volumes were down more than 10% but refined products volumes also were ~10% lower.
- Credit Suisse says KEX's pricing lags in both down and up markets, which means "if 2016 is the bottom in inland pricing the earnings bottom is not until 2017, [and] without a pickup in Coastal or DES, 2017 earnings could look a lot like 2016."
- Although KEX's coastal fleet utilization is expected to remain ~90%, Credit Suisse says competition from larger Jones Act tankers could weigh on pricing due to the lifting of the ban on U.S. crude exports that has put downward pressure on the U.S. Jones Act tanker market.
Wed, Mar. 9, 2:48 PM
- Kirby Corp. (KEX +1.6%) is higher after agreeing to acquire Seacor Holdings' (CKH +0.9%) inland tank barge fleet for ~$88M; the asset purchase will consist of 27 inland 30K-bbl tank barges and 13 inland towboats, plus a 30K-bbl tank barge and a towboat currently under construction.
- Jefferies maintains its Buy rating and hikes its price target to $70 from $65, saying the deal will further enhance KEX's scale in the U.S. inland tank barge market and should be accretive by $0.16-$0.24 in annual EPS; the firm says demand for barges moving crude oil is weakening, but demand remains strong for moving petrochemicals and refined products.
Thu, Jan. 28, 3:59 PM
- Kirby Corp. (KEX -4%) fell to five-year lows before rebounding slightly, after the petroleum shipper missed Q4 earnings and revenue expectations and forecasts Q1 and FY 2016 profits trailing Wall Street consensus.
- KEX sees Q4 EPS of $0.75-$0.85, well below the $0.97 analyst consensus estimate, and FY 2016 EPS of $3.00-$3.50 per share, sharply lower than the $4.13 consensus outlook, reflecting limited visibility given the environment of weakening global growth and volatile commodity prices.
- Shares are downgraded to Sector Perform from Outperform with a $32 price target, slashed from $65, at RBC Capital, which does not believe the stock can work again until oil and energy prices rebound.
Dec. 18, 2014, 11:59 AM
- Kirby Corp. (KEX -7%) sinks to 52-week lows after the barge operator cut its outlook for both Q4 and FY 2015, citing problems in its land-based diesel engine services market and weak demand related to falling oil prices.
- The reduction in revenue and profit in the land-based diesel engine services market, particularly in the manufacturing of new pressure pumping units, was the most significant factor in the change in Q4 expectations.
- FBR Capital lowers its stock target price to $100 from $145 but remains buyers, believing slower near-term growth already is reflected in the stock, and KEX has historically used these periods of dislocation to consolidate the market.
Dec. 17, 2014, 4:38 PM
- Kirby (NYSE:KEX) -6.2% AH after issuing downside guidance for Q4, now seeing EPS of $1.10-$1.20 vs. its prior outlook of $1.30-$1.40 and $1.35 analyst consensus estimate.
- For FY 2014, KEX sees EPS of $4.84-$4.94, below previously announced guidance of $5.04-$5.14.
- KEX says most of the change in guidance is due to a disappointing ramp-up in its land-based diesel engine services market, as falling crude oil prices have led to customer cancellations and requests to delay delivery of projects; also, bad weather along the Gulf coast has impacted Q4 performance in its marine transportation markets.
Dec. 3, 2014, 11:48 AM
- Kirby (KEX -1.6%) is downgraded to Hold from Buy at BB&T, urging investor caution until consensus estimates become more realistic and oil prices stabilize.
- The firm says Wall Street has not adjusted earnings to reflect a decline in United revenues and profitability as oilfield service capex slows; also, as the growth in rig and well counts slow along with oil production, it is possible that some of the excess barge capacity that has been dedicated to the oil trade could matriculate to the petrochemical market, which could hamper price and utilization.
Mar. 20, 2014, 11:13 AM
- Drybulk shipping rates are up big during past five weeks and rose again overnight.
- The Baltic Dry Index rose 3.2% overnight and has surged 49% since Feb. 12; the BDI has gained in 24 of the last 26 sessions, led by a 211% rise in capesize rates.
- Capesize rates climbed 6.9% (or $1,664/day) overnight to $25,659/day, while panamax rates rose $4/day to $9,019/day and supramax rates added 0.4% ($48/day) to $12,598/day.
- Related drybulk equities include DRYS, GNK, PRGN, DSX, FREE, ULTR, EGLE, NM, NMM, SBLK, KEX, SB, SINO, BALT, SHIP, DCIX.
Jan. 31, 2014, 3:31 PM
- Kirby (KEX +2.6%) continues to push higher after Q4 results showed continued strong demand for liquids transportation, keeping financial performance in the upper level of expectations despite weather challenges and continued headwinds for the engine service business.
- FBR Capital remains bullish on the near- and long-term outlook following the earnings call; 2014 guidance looks very achievable given that the levers are pricing and utilization in the coastal market and a slight rebound in diesel engine services, both of which firm expects to be robust in 2014 (Briefing.com).
Jan. 16, 2014, 9:30 AM
- Greenbrier (GBX) +6.1% premarket on news that its Gunderson Marine division received an order from Kirby Offshore Marine (KEX) to build an articulated ocean-going oil and chemical tank barge, with an option for a second unit, in a deal that will bring GBX's current marine backlog to ~$70M.
- Construction on the barge will begin in June, with completion scheduled sometime next year.
Jan. 15, 2014, 10:35 AM
- Shippers are on the move after dry bulk shipping rates finally show their first gain of the year.
- The Baltic Dry Index shows a four-point increase due to gains in capesize rates, which rose $280 to $13,168/day, while panamax rates fell $54 to $12,534 and supramax rates fell $65 to $12,364/day.
- Before today's gains, the BDI had plunged 40% YTD in its worst start of the year in 30 years.
- FREE +7.4%, EGLE +7.3%, GNK +5.5%, SB +4.3%, DRYS +4.1%, NM +3.4%, SBLK +2.8%, SHIP +2.5%, ESEA +2.3%, PRGN +2.1%, DCIX +2%, GSL +1.9%, NMM +1.3%, DSX +1.3%, DAC +1.1%, KEX +0.8%, ULTR +0.3%, BALT -1%, SINO -0.8%.
Sep. 30, 2013, 10:24 AM
- Dry bulk shippers are smacked following a sharp decline in capesize shipping rates for a third consecutive day.
- Overnight, capesize rates fell 4.2% (or $1,598/day) to $36,425/day and have dropped 14% (or $5,786/day) in the last three days; panamax rates fell 0.3% (or $48) to $14,388/day, while supramax rates rose 0.9% (or $100) to $11,279/day.
- The Dry Bulk Index fell 2.1% (or 43 points) to 2,003 overnight, but has doubled since Aug. 12, led by capesize rates which have climbed 245%, largely driven by higher iron ore shipments to China out of Brazil and Australia (Briefing.com).
- Earlier: Wells Fargo cautious on recent dry bulk rally.
- FREE -7.2%, DRYS -5.5%, SBLK -4.8%, EGLE -4.3%, SHIP -3.8%, BALT -3.1%, DCIX -2.6%, DSX -2.7%, GNK -2.6%, SB -2%, PRGN -1.2%, SINO -0.8%, VLCCF -0.5%, KEX -0.1%.
- ETF: SEA.
Sep. 25, 2013, 10:44 AM
- Dry bulk shipping rates are rising again: Overnight, capesize rates rose 5.2% (or $2,206/day) to $42,211/day, panamax rates rose 8.9% (or $1,144) to $13,989/day, and supramax rates rose 2.6% to $10,579/day.
- Since Aug. 12, capesize rates are up 300%, largely driven by higher iron ore shipments to China out of Brazil and Australia, while panamax rates are up 87%, largely driven by coal activity and anticipation of a good amount of shipments from a bountiful U.S. harvest (Briefing.com).
- EGLE +6.2%, FREE +5.6%, SINO +5.1%, VLCCF +4.5%, DRYS +4.2%, BALT +4%, PRGN +3.4%, DSX +1.6%, ULTR +1.2%, NM +1%, SB +0.9%, SFL +0.7%, NMM +0.5%, KEX +0.3%, DCIX +0.3%, SBLK +0.3%, GNK +0.2%.
- However, Seanergy (SHIP) -15.3% after reporting earnings this morning and reigniting concerns about its ability to stay in business.
- ETF: SEA.
Sep. 6, 2013, 11:57 AM
- Drybulk shipping stocks continue recent sharp gains following further strength in shipping rates, as capesize shipping rates rose 10% overnight to $21,793/day, the first time since Jan. 2012 that capesize rates exceed $20K/day (Briefing.com).
- The cost of renting a capesize drybulk ship is up 107% YTD, largely driven by higher iron ore shipments to China out of Brazil and Australia.
- SHIP +16.1%, FREE +12%, EGLE +11.2%, GNK +9.5%, SINO +6.8%, DRYS +5.4%, NM +4.8%, SBLK +4.3%, DCIX +3.5%, DSX +3.5%, VLCCF +3.3%, BALT +2.8%, PRGN +2.2%, SFL +1.6%, KEX +1%.
Oct. 26, 2012, 4:05 PM
Tank-barge operator Kirby Corp. (KEX +5.5%) will replace bulk shipper Overseas Shipholding Group (OSG -5.4%) in the Dow Jones Transportation Average after the close of trading on Monday. The index change is being done because OSG announced earlier this week it is evaluating strategic options, including a potential Chapter 11 and certain previously issued financial statements shouldn't be relied on.| Oct. 26, 2012, 4:05 PM
Jun. 25, 2012, 12:06 PM
BofA Merrill downgrades Kirby (KEX -11.7%) shares to Neutral from Buy and lowers its price target to $56 from $69 after the tank barge operator lowered earnings estimates for Q2 and FY 2012, noting softness in its land-based diesel engine services business. KEX plans to shift barges from New York Harbor - a "mess," CEO Joe Pyne says - and move capacity to the Gulf Coast in search of higher margins.| Jun. 25, 2012, 12:06 PM
Jun. 22, 2012, 5:13 PM
Kirby (KEX) -4.9% AH after lowering guidance for FQ3 and FY 2012. The tank barge operator now sees FQ3 EPS at $0.80-$0.85 vs. prior guidance of $0.97-$1.02 and $1.00 consensus estimate, and full year at $3.45-$3.70 vs. prior $3.85-$4.05 and $3.91 consensus. The new guidance reflects deterioration in the manufacturing area and softness in oilfield-related sales.| Jun. 22, 2012, 5:13 PM