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Kirby in deep dive after full-year profit warning

|About: Kirby Corporation (KEX)|By:, SA News Editor

Shares of barge operator Kirby Corp. (KEX -7.5%) sink to their lowest levels in six months after missing Q2 earnings estimates and slashing full-year earnings guidance.

KEX says reduced oilfield exploration and production activity has resulted in a "more pronounced than expected" downturn in its distribution and services businesses, a trend the company sees continuing for the rest of the year.

As a result, KEX issued downside guidance for FY 2019 earnings, now seeing EPS of $2.80-$3.20, down from prior guidance of $3.25-$3.75 and well below $3.44 analyst consensus.

For Q2, KEX says distribution and services revenues fell 13% Y/Y to $366.7M from $424.5M a year earlier amid lower customer demand across the entire portfolio of oil and gas businesses, while marine transportation revenues rose 7% to $404.3M from $378.2M in the prior-year quarter, with average barge utilization in the mid-90% range in the inland market.

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