Knife River (NYSE:KNF) Shares Gap Down After Earnings Miss

Key Points

• Knife River’s shares fell sharply after the company reported quarterly EPS of $0.77, missing the $1.13 consensus estimate; the stock opened at $71.15 versus a prior close of $78.84 and later traded near $66.42.
• Quarterly revenue reached $938.6 million, exceeding estimates of $931.4 million and rising 12.6% year over year, but profitability declined from the prior-year EPS of $0.89.
• Despite the earnings miss, analysts maintain a “Moderate Buy” consensus with an average price target of $97.14, while institutional investors own 80.11% of the company.

Shares of Knife River Corporation (NYSE:KNF - Get Free Report) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $78.84, but opened at $71.15. Knife River shares last traded at $66.4230, with a volume of 216,340 shares.

The company reported $0.77 EPS for the quarter, missing the consensus estimate of $1.13 by ($0.36). The business had revenue of $938.60 million during the quarter, compared to analyst estimates of $931.39 million. Knife River had a net margin of 4.58% and a return on equity of 9.35%. The firm's revenue for the quarter was up 12.6% on a year-over-year basis. During the same period in the previous year, the business posted $0.89 earnings per share.

Analyst Ratings Changes

Several equities research analysts recently commented on KNF shares. Royal Bank Of Canada cut their price target on shares of Knife River from $109.00 to $107.00 and set an "outperform" rating for the company in a report on Tuesday, June 30th. Weiss Ratings raised shares of Knife River from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, May 27th. Wells Fargo & Company lifted their target price on shares of Knife River from $80.00 to $81.00 and gave the company an "underweight" rating in a research report on Wednesday, July 8th. Oppenheimer initiated coverage on shares of Knife River in a research note on Thursday, May 28th. They set an "outperform" rating and a $95.00 target price for the company. Finally, JPMorgan Chase & Co. upped their price target 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. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Knife River has an average rating of "Moderate Buy" and an average price target of $97.14.

Institutional Investors Weigh In On Knife River

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Handelsbanken Fonder AB raised its position in shares of Knife River by 4.9% in the second quarter. Handelsbanken Fonder AB now owns 14,900 shares of the company's stock valued at $1,246,000 after buying an additional 700 shares during the last quarter. Harbor Investment Advisory LLC purchased a new position in shares of Knife River in the second quarter worth about $50,000. Central Pacific Bank Trust Division boosted its position in Knife River by 17.2% during the second quarter. Central Pacific Bank Trust Division now owns 7,276 shares of the company's stock worth $609,000 after acquiring an additional 1,070 shares during the last quarter. Ballast Advisors LLC acquired a new position in Knife River during the first quarter worth about $97,000. Finally, NewEdge Advisors LLC grew its stake in Knife River by 1.3% during the 1st quarter. NewEdge Advisors LLC now owns 23,790 shares of the company's stock valued at $1,942,000 after acquiring an additional 304 shares in the last quarter. Institutional investors and hedge funds own 80.11% of the company's stock.

Knife River Stock Performance

The company has a market cap of $3.82 billion, a PE ratio of 26.18, a PEG ratio of 1.31 and a beta of 0.42. The company has a debt-to-equity ratio of 0.91, a quick ratio of 1.31 and a current ratio of 2.67. The firm's 50 day moving average is $80.50 and its 200-day moving average is $81.40.

Knife River Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.