Knife River (NYSE:KNF) Issues Quarterly Earnings Results, Misses Estimates By $0.36 EPS

Key Points

• Knife River reported quarterly EPS of $0.77, missing the $1.13 analyst consensus by $0.36. Revenue reached $938.6 million, exceeding estimates of $931.4 million and increasing 12.6% year over year.
• The stock fell 10.5% to $70.56 following the earnings release, well below its 12-month high of $96.28. The company reported a 4.58% net margin and 9.35% return on equity.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $97.14; institutional investors own 80.11% of the shares.

Knife River (NYSE:KNF - Get Free Report) issued its quarterly earnings data on Tuesday. The company reported $0.77 EPS for the quarter, missing analysts' consensus estimates of $1.13 by ($0.36), Zacks reports. The company had revenue of $938.60 million for the quarter, compared to the consensus estimate of $931.39 million. Knife River had a return on equity of 9.35% and a net margin of 4.58%.The firm's revenue was up 12.6% compared to the same quarter last year. During the same period in the prior year, the company earned $0.89 EPS.

Knife River Trading Down 10.5%

Shares of NYSE:KNF traded down $8.29 during midday trading on Tuesday, hitting $70.56. The company had a trading volume of 1,478,211 shares, compared to its average volume of 587,662. The company has a current ratio of 2.67, a quick ratio of 1.31 and a debt-to-equity ratio of 0.91. Knife River has a 12 month low of $58.72 and a 12 month high of $96.28. The firm has a fifty day simple moving average of $80.50 and a 200 day simple moving average of $81.40. The stock has a market cap of $4.00 billion, a price-to-earnings ratio of 27.52, a PEG ratio of 1.31 and a beta of 0.42.

Analyst Ratings Changes

KNF has been the topic of a number of research reports. JPMorgan Chase & Co. upped their target price on shares of Knife River from $90.00 to $95.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 6th. Oppenheimer assumed coverage on shares of Knife River in a research report on Thursday, May 28th. They issued an "outperform" rating and a $95.00 price objective for the company. Weiss Ratings upgraded Knife River from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, May 27th. Zacks Research raised Knife River from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 3rd. Finally, Royal Bank Of Canada dropped their target price on Knife River from $109.00 to $107.00 and set an "outperform" rating for the company in a research report on Tuesday, June 30th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $97.14.

Institutional Trading of Knife River

A number of hedge funds have recently modified their holdings of the company. McMillan Office Inc. bought a new stake in Knife River in the fourth quarter valued at approximately $36,000. Smartleaf Asset Management LLC increased its position in shares of Knife River by 1,365.6% in the 2nd quarter. Smartleaf Asset Management LLC now owns 1,363 shares of the company's stock valued at $113,000 after buying an additional 1,270 shares in the last quarter. Kestra Advisory Services LLC acquired a new stake in Knife River during the 4th quarter worth $184,000. Lido Advisors LLC bought a new position in Knife River during the fourth quarter worth about $211,000. Finally, CIBC Private Wealth Group LLC lifted its holdings in Knife River by 43.8% during the third quarter. CIBC Private Wealth Group LLC now owns 2,835 shares of the company's stock worth $218,000 after acquiring an additional 863 shares in the last quarter. 80.11% of the stock is currently owned by institutional investors and hedge funds.

About Knife River

Knife River Corporation, headquartered in Bismarck, North Dakota, is a leading integrated construction materials and contracting company in the western United States. The company specializes in producing and supplying aggregates, asphalt mix, ready-mixed concrete and other heavy construction materials used in highway, commercial and residential projects.

In addition to material production, Knife River offers a comprehensive suite of contracting services, including heavy civil construction, road building, underground and open-pit mining and logistics support.

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