World Kinect (NYSE:WKC) Posts Earnings Results, Beats Expectations By $0.11 EPS

Key Points

• World Kinect reported earnings of $0.59 EPS for the quarter, exceeding estimates of $0.48 by $0.11. However, the company's revenue fell short at $9.04 billion, compared to an estimated $9.32 billion.
• Despite the earnings beat, shares fell 7.2% to $25.32 amid mixed analyst ratings, with a consensus target price of $29.80.
• The company announced a quarterly dividend of $0.20, increasing from a previous $0.17, resulting in an annualized yield of 3.2%.

World Kinect (NYSE:WKC - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.59 earnings per share for the quarter, topping the consensus estimate of $0.48 by $0.11, Zacks reports. World Kinect had a negative net margin of 1.11% and a positive return on equity of 7.07%. The firm had revenue of $9.04 billion during the quarter, compared to analysts' expectations of $9.32 billion.

World Kinect Stock Up 0.6%

NYSE:WKC traded up $0.15 during midday trading on Wednesday, reaching $24.99. 311,294 shares of the stock traded hands, compared to its average volume of 711,821. World Kinect has a 12-month low of $22.70 and a 12-month high of $31.70. The business has a 50-day moving average of $28.10 and a two-hundred day moving average of $27.50. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.98 and a current ratio of 1.13. The stock has a market capitalization of $1.39 billion, a PE ratio of -3.28, a price-to-earnings-growth ratio of 1.19 and a beta of 1.39.

World Kinect Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 16th. Investors of record on Tuesday, June 17th were given a dividend of $0.20 per share. The ex-dividend date of this dividend was Tuesday, June 17th. This is a positive change from World Kinect's previous quarterly dividend of $0.17. This represents a $0.80 dividend on an annualized basis and a yield of 3.2%. World Kinect's dividend payout ratio is currently -10.48%.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in World Kinect by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 33,972 shares of the company's stock valued at $963,000 after purchasing an additional 1,497 shares in the last quarter. Intech Investment Management LLC increased its stake in World Kinect by 95.5% during the 1st quarter. Intech Investment Management LLC now owns 47,437 shares of the company's stock valued at $1,345,000 after purchasing an additional 23,176 shares in the last quarter. Royal Bank of Canada increased its stake in World Kinect by 2.2% during the 1st quarter. Royal Bank of Canada now owns 68,228 shares of the company's stock valued at $1,934,000 after purchasing an additional 1,481 shares in the last quarter. AQR Capital Management LLC increased its stake in World Kinect by 16.5% during the 1st quarter. AQR Capital Management LLC now owns 119,198 shares of the company's stock valued at $3,380,000 after purchasing an additional 16,874 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in World Kinect by 18.7% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 220,791 shares of the company's stock valued at $6,262,000 after purchasing an additional 34,807 shares in the last quarter. Institutional investors and hedge funds own 97.06% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on WKC shares. Raymond James Financial reaffirmed an "outperform" rating and issued a $33.00 price target (down previously from $35.00) on shares of World Kinect in a research report on Friday, August 1st. Bank of America lowered their price target on shares of World Kinect from $27.00 to $26.00 and set an "underperform" rating for the company in a research report on Friday, April 25th. Finally, Morgan Stanley lowered their price target on shares of World Kinect from $32.00 to $26.00 and set an "underweight" rating for the company in a research report on Wednesday. Two equities research analysts have rated the stock with a sell rating, two have issued a hold rating and one has issued a buy rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $29.40.

About World Kinect

World Kinect Corporation operates as an energy management company in the United States, the Americas, Europe, the Middle East, Africa, and the Asia Pacific. This segment also offers fuel management, price risk management, ground handling, dispatch services, and trip planning services, such as flight planning and scheduling, weather reports and overflight permits; payment and processing services; and operates a web-based marketplace platform.