KGS Earnings Prediction
The chart below shows how KGS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KGS sees a -4.04% change in stock price 10 days leading up to the earnings, and a -0.65% change 10 days following the report. On the earnings day itself, the stock moves by +0.72%. This data can give you a slight idea of what to expect for the next quarter's release.
KGS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
324.65M
40.55%
4.84%
Gross Margin
37.55%
7.59%
2.96%
Operating Margin
27.39%
3.05%
20.50%
Net Margin
-1.91%
-120.28%
-188.02%
EPS
-0.07
-125.00%
-200.00%
No Data Available
KGS Earnings Analysis
Kodiak Gas Services, Inc. Corporation (KGS.N) Earnings Conference Call
Positive
Record Revenue Achievement: 1. Record Revenue: Kodiak Gas Services achieved a record revenue of $325 million in Q3 2024, marking a 5% sequential increase driven by strong performance in both Contract Services and Other Services segments.
Adjusted EBITDA Increase: 2. High Adjusted EBITDA: The company reported an adjusted EBITDA of $168 million for the quarter, reflecting a 9% increase compared to the previous quarter, with an adjusted EBITDA margin expanding to 52%.
High Fleet Utilization Rates: 3. Strong Fleet Utilization: Fleet utilization increased to over 96%, with core large horsepower assets operating at over 99% utilization, indicating robust demand in the compression market.
Strong Free Cash Flow: 4. Significant Free Cash Flow: Kodiak generated $53 million in free cash flow during the quarter, supporting its financial health and ability to return value to shareholders.
Dividend Increase Announcement: 5. Increased Dividend: The Board approved a quarterly dividend of $0.41 per share, equating to an annualized dividend of $1.64 per share, demonstrating the company's commitment to returning capital to shareholders.
Negative
Net Loss Analysis: 1. Net Loss Reported: Kodiak Gas Services reported a net loss of $6.2 million for Q3 2024, impacted by non-cash items totaling nearly $41 million, including a $10 million loss on asset sales and a $20 million mark-to-market loss on interest rate hedges.
Debt Risk Assessment: 2. High Debt Levels: The company ended Q3 2024 with total debt of $2.6 billion and a credit agreement leverage ratio of 3.9 times, indicating significant leverage that may pose risks to financial stability.
Working Capital Challenges: 3. Working Capital Outflow: There was a substantial working capital cash outflow of approximately $85 million in Q3 2024, attributed to elevated inventory levels and challenges in the invoicing process during the integration of two systems.
Asset Impairment Charges: 4. Impairment Charges: Kodiak incurred a $9.9 million asset impairment charge on older units, reflecting potential overvaluation or underperformance of certain assets in the fleet.
Rising Maintenance Costs: 5. Increased Capital Expenditures: Maintenance capital expenditures rose to nearly $22 million in Q3 2024, indicating higher ongoing costs associated with maintaining and upgrading the fleet, which could pressure future cash flows.
KGS FAQs
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KGS Earning Call Sentiment
Kodiak Gas Services, Inc. (KGS) Q3 2024 Earnings Call Transcript
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KGS.N
-3.02%Positive
The earnings call summary presents a mixed picture: strong revenue growth and operational efficiency, but offset by a net loss and high debt. The Q&A highlights management's reluctance to provide detailed future guidance, which can be a red flag for investors. Despite positive shareholder returns and a dividend, the lack of clarity on future margins and high competitive pressures temper enthusiasm. Given the market cap, these factors suggest a neutral stock price movement, with potential fluctuations due to market reactions to the mixed signals.
